Claude Code's launch hits IBM's stock: What's the connection
IBM's stock dropped on Monday after Anthropic launched Claude Code, an AI tool that automates updating COBOL—the decades-old code that handles an estimated 95% of ATM transactions in the United States and supports critical systems in banking and finance.
The news hit other tech giants too, with Accenture and Cognizant shares also taking a dip.
Claude code threatens IBM's consulting revenue
IBM has made a lot of money from consulting teams who help companies modernize their COBOL systems—a process that used to take months or even years.
Now, Claude Code can do much of that work automatically and way faster, which could seriously cut into IBM's consulting business.
Potential for widespread adoption and cost savings
Claude Code can map out old program logic, track data flow, translate COBOL logic into modern programming languages, and even create migration plans—all at enterprise scale.
Companies can adopt it alongside their existing tools, potentially reducing the need for large consultant teams.
Investors are worried this could mean less revenue for IBM as businesses shift to automated solutions.