IBM stock experienced its worst single-day decline since October 2000, dropping 13.2% after Anthropic announced its AI model Claude can now streamline COBOL code. This legacy programming language is a core revenue driver for IBM, powering critical systems like U.S. ATM transactions. The news sparked immediate market volatility and widespread discussion on financial platforms.
The U.S. stock market faced sharp volatility following a significant drop in IBM shares. The stock crash was triggered by an announcement from Anthropic that its AI model, Claude, could now work around COBOL code.
“It’s official: IBM stock, $IBM, just posted its worst day since October 2000 after Anthropic announced that Claude can streamline COBOL code,” stated a post by The Kobeissi Letter. This development led IBM’s stock to fall from $257 to $223.39 in a single session.
COBOL remains fundamental to major financial and government infrastructures. “It still runs roughly 95% of U.S. ATM transactions and sits at the core of major banks and government systems,” one commentator noted regarding the language’s enduring importance.
Analyst price targets for IBM now present a wide range. Data from TipRanks shows an average 12-month price target of $337.53 based on 18 analysts.
The highest forecast is $380.00 while the lowest is $236.00. This average target represents a potential 51.12% increase from the stock’s current price of $223.35.
