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Why IBM Shares Tumbled Over 13%

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Yesterday, IBM Corporation opened above $254 but ended the session below $224, marking one of its steepest single-day drops in 25 years. Since early February, the stock has slumped about 27%, recording its worst monthly performance since 1968.

What Triggered The Decline?

The key catalyst was Anthropic announcing its new AI platform, Claude Code, which specialises in modernising legacy COBOL code. This development is significant for IBM, as a large portion of its business relies on mainframes handling bank and government transactions in COBOL. Traditionally, system upgrades required vast teams of consultants and enormous budgets. Claude Code automates this work, making it quicker and cheaper, directly threatening IBM’s service revenue and highlighting how AI could disrupt established tech business models.

Technical Outlook For IBM Shares

In 2025, IBM traded within an upward channel, with $300 acting as a firm ceiling. Multiple attempts to break above failed. The 28 January earnings report triggered a bull trap and accelerated the sell-off, with rising volume on bearish candles signalling market weakness. Despite this, top analysts at Goldman Sachs and Jefferies maintain “Buy” ratings, suggesting panic over Claude Code may be exaggerated and IBM’s fundamentals remain strong. Key potential support levels include: → psychological $200 mark → 2025 low near $215 → lower boundary of the established upward channel (highlighted in red) The stock may stabilise around these areas before a clearer trend emerges. FXOpen offers spreads from 0.0 pips and commissions from $1.50 per lot (additional fees may apply). Enjoy trading on MT4, MT5, TickTrader or TradingView trading platforms! The FXOpen App is a dedicated mobile application designed to give traders full control of their accounts anytime, anywhere. This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

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