IBM bounces after worst day in decades on AI disruption fears
24/02/2026 15:36
** Shares of IBM IBM.N up 5.2% to $234.96 on Tues after
suffering their steepest fall since 2000 in prior session
** IBM shares fell >13% on Mon after AI startup Anthropic said
its Claude Code tool could be used to modernize COBOL, a
programming language widely used on IBM mainframes across
banking, insurance and government systems
** This as software firms such as Oracle ORCL.N , CrowdStrike
CRWD.O and Datadog DDOG.O also rise on Tues as Anthropic
touts new AI tools after legal plug-in sparked an aggressive
selloff
** IBM shares recently traded at about 18x forward earnings
vs 5-yr avg of about 17x, suggesting shares are fairly valued,
according to LSEG Datastream data
** Stock off ~27% from record intraday high of $324.90 hit
in mid-Nov
** Avg rating of 23 analysts covering IBM's stock is "buy";
median PT $329.67 - LSEG
(Lance Tupper is a Reuters market analyst. The views expressed
are his own)
((lance.tupper@tr.com 1-646-279-6380))