EL7.AI
StocksHigh ImpactUpdated•Originally published 23 February 2026•Updated 24 February 2026•
1 min read

IBM Stock Set for Worst Month in Over 50 Years Amid Anthropic Competition

Key Facts

1IBM stock fell 13% on Monday, heading for its worst monthly performance in 34 years.
2Anthropic’s Claude Code tool is identified as a direct threat to a critical part of IBM's business model.

IBM shares experienced a sharp 13% decline, putting February on track to be the company's worst monthly performance in more than 50 years, exceeding previous estimates of a 34-year low. This historic sell-off is primarily driven by the emergence of Anthropic’s Claude Code, which is viewed as a direct threat to IBM's core enterprise software and services business. Analysts suggest that this new AI tool could disrupt traditional revenue streams that have long anchored the company's valuation. The significant drop reflects a broader shift in investor sentiment as the market questions IBM's competitive moat against innovative AI startups. The company now faces mounting pressure to adapt its business model to survive increasingly sophisticated technological competition.