International Business Machines (NYSE: IBM) is traded at $229.32 as of February 24, 2026, while the average analyst price target sits at $324.95. That is a gap of roughly 41.7% between where the stock trades and where Wall Street thinks it belongs.

International Business Machines Corp IBM shares are rebounding Tuesday morning after plunging more than 13% Monday, when fears about artificial-intelligence disruption hammered the legacy tech giant.

Investors wiped $40 billion from IBM's market cap after Anthropic released COBOL translation tools. Analysts say the market got the news right and the conclusion wrong.

Investors reacted to Anthropic’s assertion that Claude Code could streamline legacy COBOL modernization, raising concerns about pressure on IBM’s high‑margin mainframe services despite longstanding competition in the space.

Discover how Anthropic's AI tool threatens IBM's dominance by modernising COBOL systems, causing a 13.2% stock drop and reshaping the future of legacy code management.

A blog post from Anthropic caused IBM's market value to drop over $30 billion due to concerns about COBOL. Here's everything you need to know about COBOL and the now viral blog from Anthropic

As of Tuesday's close, International Business Machines Inc. IBM is down 25% month-to-date — putting the stock on pace for its worst month since December 1992. That's worse than October 2018's 23% decline.

Since the majority of mainframe computers running COBOL are produced by IBM, the development triggered heavy selling in the company’s stock. The stock dropped as much as 13% during intraday trading, marking its steepest single-day fall since March 2020.

IBM still profits from mainframes running decades-old COBOL systems. Anthropic says AI can migrate that software elsewhere. IBM stock was down 10% on Monday afternoon after Anthropic published a blog post about how its Claude Code tool can be used to modernize software written in the COBOL language,