Buy CryptoMarketsSpotFuturesGOLDEarnEvent Center
More
Commodity Zero-Fee Gala
TLDRs; IBM shares fell 13% after AI startup Anthropic unveiled Claude Code, sparking investor fears about legacy business risks. Anthropic’s Claude Code tool automatesTLDRs; IBM shares fell 13% after AI startup Anthropic unveiled Claude Code, sparking investor fears about legacy business risks. Anthropic’s Claude Code tool automates

IBM (IBM) Stock; Drops 13% as Anthropic Promotes COBOL AI Tool

Author: Coincentral
Source: Coincentral
2026/02/24 18:32
3 min read
LONG
LONG$0,001983+0,40%
For feedback or concerns regarding this content, please contact us at crypto.news@mexc.com

TLDRs;

  • IBM shares fell 13% after AI startup Anthropic unveiled Claude Code, sparking investor fears about legacy business risks.
  • Anthropic’s Claude Code tool automates COBOL modernization, a process traditionally requiring extensive manual coding effort.
  • The market fears AI automation tools could diminish IBM’s mainframe revenue and affect long-term growth prospects.
  • IBM’s mainframe operations remain vital, serving financial institutions and governments relying on COBOL applications.
  • IBM faces the dual challenge of adapting to AI trends while maintaining its legacy system revenue streams.

IBM (IBM) saw its stock tumble by as much as 13% on February 23, marking its most significant intraday decline since March 2020. The selloff comes in response to comments and announcements from AI startup Anthropic, which recently promoted its new Claude Code tool designed to modernize COBOL applications.

The sudden market reaction highlights growing investor apprehension about the impact of artificial intelligence on traditional technology companies, particularly those relying on legacy systems. February’s declines have now pushed IBM’s monthly stock performance down 26%, the steepest single-month drop for the company since at least 1968.

Claude Code Targets Legacy COBOL Systems

Claude Code is an AI-driven tool aimed at assisting in the modernization of COBOL, a programming language that has powered IBM mainframes for decades. COBOL remains critical in industries such as banking, insurance, and government operations, where legacy systems form the backbone of daily operations.


IBM Stock Card
International Business Machines Corporation, IBM

According to Anthropic, Claude Code can automate portions of COBOL modernization, reducing the manual labor historically required for such projects. While this has the potential to accelerate software updates and system improvements, investors appear concerned that widespread adoption could erode IBM’s long-standing competitive advantage in the mainframe market.

Investor Concerns Over Legacy Business Impact

Most mainframe computers running COBOL are produced by IBM, making the company a central player in this specialized market. Analysts suggest that tools like Claude Code could threaten IBM’s revenue streams by enabling clients to modernize without relying as heavily on IBM’s mainframe services.

This concern has prompted a rapid reassessment of IBM’s growth prospects. Investors are increasingly weighing the balance between IBM’s ongoing enterprise contracts and the potential disruption posed by emerging AI solutions that could make certain legacy services less indispensable.

Mainframe Business Still Holds Strategic Value

Despite the selloff, IBM’s mainframe business continues to be a key pillar of its operations. Financial institutions, insurance companies, and government agencies still depend heavily on COBOL-based systems for core processes such as transaction processing, record-keeping, and regulatory compliance.

Industry experts note that even with AI-assisted modernization, transitioning away from legacy systems is complex and may not happen rapidly. IBM still holds a significant advantage in mainframe expertise, infrastructure, and support networks, providing a buffer against short-term market volatility.

Looking Ahead: AI and Legacy Tech

The decline in IBM’s stock reflects a broader theme in technology investing: how AI innovations intersect with established industries. While AI presents opportunities for efficiency and modernization, it also introduces uncertainty for companies historically dependent on specialized, slower-evolving technologies.

As AI tools like Claude Code gain traction, IBM will need to demonstrate how it can leverage these technological shifts to enhance, rather than undermine, its core offerings. The company’s ability to innovate while maintaining strong client relationships in critical sectors will be closely watched by investors and analysts in the coming months.

The post IBM (IBM) Stock; Drops 13% as Anthropic Promotes COBOL AI Tool appeared first on CoinCentral.

Disclaimer: The articles reposted on this site are sourced from public platforms and are provided for informational purposes only. They do not necessarily reflect the views of MEXC. All rights remain with the original authors. If you believe any content infringes on third-party rights, please contact crypto.news@mexc.com for removal. MEXC makes no guarantees regarding the accuracy, completeness, or timeliness of the content and is not responsible for any actions taken based on the information provided. The content does not constitute financial, legal, or other professional advice, nor should it be considered a recommendation or endorsement by MEXC.

You May Also Like

SOL Faces Pressure, DOT Climbs 2.3%, While BullZilla Presale Rockets Past $460K as the Top New Crypto to Join Now

SOL Faces Pressure, DOT Climbs 2.3%, While BullZilla Presale Rockets Past $460K as the Top New Crypto to Join Now

What if the next meme coin wasn’t just about culture but also structure? It’s the question many investors ask as meme coin volatility rises. Communities demand more than hype, and the search for the Top New cryptos to join now is heating up. In the past 24 hours, Solana fell 0.75% to $236.52 while Polkadot […] Continue Reading: SOL Faces Pressure, DOT Climbs 2.3%, While BullZilla Presale Rockets Past $460K as the Top New Crypto to Join Now
Share
Coinstats2025/09/18 05:15
Here’s How Consumers May Benefit From Lower Interest Rates

Here’s How Consumers May Benefit From Lower Interest Rates

The post Here’s How Consumers May Benefit From Lower Interest Rates appeared on BitcoinEthereumNews.com. Topline The Federal Reserve on Wednesday opted to ease interest rates for the first time in months, leading the way for potentially lower mortgage rates, bond yields and a likely boost to cryptocurrency over the coming weeks. Average long-term mortgage rates dropped to their lowest levels in months ahead of the central bank’s policy shift. Copyright{2018} The Associated Press. All rights reserved. Key Facts The central bank’s policymaking panel voted this week to lower interest rates, which have sat between 4.25% and 4.5% since December, to a new range of 4% and 4.25%. How Will Lower Interest Rates Impact Mortgage Rates? Mortgage rates tend to fall before and during a period of interest rate cuts: The average 30-year fixed-rate mortgage dropped to 6.35% from 6.5% last week, the lowest level since October 2024, mortgage buyer Freddie Mac reported. Borrowing costs on 15-year fixed-rate mortgages also dropped to 5.5% from 5.6% as they neared the year-ago rate of 5.27%. When the Federal Reserve lowered the funds rate to between 0% and 0.25% during the pandemic, 30-year mortgage rates hit record lows between 2.7% and 3% by the end of 2020, according to data published by Freddie Mac. Consumers who refinanced their mortgages in 2020 saved about $5.3 billion annually as rates dropped, according to the Consumer Financial Protection Bureau. Similarly, mortgage rates spiked around 7% as interest rates were hiked in 2022 and 2023, though mortgage rates appeared to react within weeks of the Fed opting to cut or raise rates. How Do Treasury Bonds Respond To Lower Interest Rates? Long-term Treasury yields are more directly influenced by interest rates, as lower rates tend to result in lower yields. When the Fed pushed rates to near zero during the pandemic, 10-year Treasury yields fell to an all-time low of 0.5%. As…
Share
BitcoinEthereumNews2025/09/18 05:59
Change “Waiting for Overnight Surges” to “Daily Deposits”—TALL MINER · 2025: Using Cloud Computing Power to Transform Volatility Into Your Second Cash Flow

Change “Waiting for Overnight Surges” to “Daily Deposits”—TALL MINER · 2025: Using Cloud Computing Power to Transform Volatility Into Your Second Cash Flow

Turn crypto volatility into steady daily income with TALL Miner. Cloud-based hashrate runs 24/7, daily payouts, $15 signup bonus, zero setup required.
Share
Blockchainreporter2025/09/18 17:38