By Simply Wall St
Publication Date: 2026-02-27 12:09:00
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IBM (NYSE:IBM) saw its sharpest single day stock drop in over 25 years after Anthropic launched Claude Code, an AI tool aimed at automating COBOL system modernization.
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The news sparked broad debate about how AI tools could affect IBM’s long standing mainframe and consulting work tied to legacy COBOL applications.
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IBM is responding with its own modernization offerings and partnerships, as investors reassess the durability of a key revenue pillar.
IBM shares recently closed at $242.01, following a 17.6% decline over the past 30 days and a 17.0% decline year to date. Over a longer stretch, the stock shows a 108.1% return over 3 years and 157.5% over 5 years, which gives important context as the market reacts to this new AI related pressure on its core business.
For investors watching NYSE:IBM, the…