What is the Anthropic COBOL threat to IBM?

Anthropic claims its Claude Code tool can speed COBOL translation and validation, which could reduce time and cost for modernization projects. That challenges high‑touch consulting work and parts of mainframe services. Investors fear scope compression, softer pricing, and margin pressure if clients rely more on automation for legacy code modernization.

Does Claude Code replace IBM’s mainframe and consulting business?

Not in one step. Critical systems still need architecture, testing at scale, integration, resiliency, and compliance. Automation may shrink portions of manual work, but complex upgrades in regulated industries require oversight. The near‑term risk is pricing and mix, not total displacement. Execution proof points will determine how ibm stock rerates.

Is the selloff in ibm stock overdone?

Technicals are oversold, which can precede sharp rebounds, but the trend is down and volatility is high. Valuation is reasonable with a dividend near 3%. The path likely depends on management’s response, bookings quality, and client adoption data. Waiting for stabilization above key moving averages is a prudent approach.

What should investors watch before the next earnings report?

Look for customer case studies, win rates against AI tools, and clarity on pricing for modernization work. On April 22, focus on consulting bookings, backlog quality, software attach, and margin guidance. Commentary on legacy code modernization and contract scope will be central to where ibm stock trades next.

Global Market Insights

IBM Stock Today, February 24: Anthropic COBOL AI Triggers 13% Rout

ByHuzaifa Zahoor February 24, 2026February 24, 2026

ibm stock tumbled about 13% today after Anthropic said its Claude Code tool can speed COBOL modernization, a long-time IBM mainframe and consulting niche. As IBM sold off, traders priced in higher AI risk to legacy software services. We explain the Anthropic COBOL threat, the link to legacy code modernization, and how it could reshape valuation in the near term. With earnings on April 22, we outline technical signals, cash returns, and clear action items for retail investors.