Stocks

IBM Stock Drops 13% Amid Anthropic Claude Code Tool Fears

Guavy AI Editorial Team Published October 4, 2026

Instruments

IBM

IBM's stock plummeted by over 13% on Monday to $223.35, its sharpest single-day drop since October 2000, after Anthropic announced that its Claude Code tool can modernize COBOL, a programming language used on IBM computers.

The fear is that this new capability could disrupt IBM's mainframe business, but analysts at Jefferies reassured investors by maintaining their 'Buy' rating and $370 price target for the stock.

While some investors are worried about the potential disruption to IBM's legacy business, retail sentiment on Stocktwits flipped to 'extremely bullish' as users argued that the threat is only against a small portion of IBM's overall revenue.

The Wire

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