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StocksMedium•24 February 2026•

1 min read

IBM Stock Rebounds 4% After Historic Selloff Triggered by AI Disruption Fears

Key Facts

1IBM stock rose 4% to $234.68 following a sharp decline in the previous session.

2The stock experienced its largest single-day drop in over 25 years on Monday, falling 13%.

3Anthropic's 'Claude Code' tool sparked fears regarding COBOL system modernization, threatening IBM's core mainframe business.

4Shares are down 27% for the month, marking the company's worst monthly performance since 1992.

IBM shares rose 4% to reach $234.68 as the market attempted to stabilize following a period of intense volatility. The recovery follows a historic 13% plunge on Monday, marking the company's largest single-day decline in more than 25 years. Investor anxiety was sparked by Anthropic's new 'Claude Code' tool, which threatens IBM's core mainframe business by automating the modernization of legacy COBOL systems. Despite the recent bounce, IBM is still facing its worst monthly performance since 1992, with shares down 27% overall this month. Analysts are now reassessing the long-term impact of generative AI on IBM's traditional revenue streams and its ability to pivot effectively. The current price action highlights a high-volatility environment as the tech giant faces fundamental challenges from emerging AI technologies.

Sources:

invezz.com