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IBM is the latest AI casualty. Shares are tanking 11% on Anthropic programming language threat
Anthropic's AI tool automates COBOL modernization, threatening IBM's legacy business which handles 95% of U.S. ATM transactions, causing an 11% stock drop.
- On Monday, IBM shares plunged 11% in afternoon trading after Anthropic outlined a new COBOL use case for Claude Code, contributing to a nearly 22% year-to-date decline.
- Anthropic's Monday blog post said `COBOL handles an estimated 95% of ATM transactions in the U.S.` and explained Claude Code automates exploration and analysis for COBOL modernization, arguing `AI flips that equation`.
- COBOL traces to the 1950s and still powers payment-processing and retail transaction systems, making business data processing a core area for IBM linked to legacy modernization.
- Traders on the NYSE sold IBM shares after Anthropic outlined that `COBOL continues to power systems responsible for large volumes of transactions,` raising concerns about automation disrupting legacy-code vendors serving banks, airlines, and government systems.
- If AI scales automation, Anthropic's claim that AI lowers legacy-code modernization costs suggests major shifts for banks and airlines using COBOL in ATMs and payment infrastructure.
54 Articles
54 Articles
Why did IBM shares fall after Anthropic's COBOL claims? #tech
Market shock from a new automation claim Anthropic released a description of how its Claude Code tool can automate key parts of legacy mainframe modernization—specifically the exploration and analysis phases of COBOL systems. Investors reacted quickly to that claim, and IBM’s stock dropped…
IBM Stock Is Trending After Crating 13% And Claude-Maker Anthropic Is The Reason Why: Here's What Happened - IBM (NYSE:IBM)
International Business Machines Corp. shares plunged 13% after Anthropic said its Claude Code AI tool could accelerate COBOL modernization, sparking investor fears that AI may disrupt IBM's legacy mainframe and consulting business despite the company's recent earnings beat.
Anthropic's latest Claude Code update triggers massive IBM stock selloff, shares down 13.2% in a day
IBM shares fell 13.2%, suffering their worst day since 2000, at $223.35 per share, after Anthropic shared an update regarding Claude Code — the same AI tool that has created a rout in IT stocks over the past few weeks,
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