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Why IBM plunged 11%: AI disrupts COBOL modernization revenue IBM shares fell roughly 11% as investors reassessed earnings durability in legacy modernization. According to Intellectia.ai, Anthropic’s Claude Code automates core steps in COBOL system upgrades that underpin IBM’s consulting and application modernization work. Because COBOL supports banks, governments, and airlines, automation of scoping, analysis, and code translation threatens high‑margin billables and multi‑year contracts. The reaction reflects concern that workflow compression could shrink total project value and squeeze services margins. What changed: Claude Code compresses COBOL modernization workflows Claude Code alters project economics by accelerating codebase discovery, dependency mapping, impact analysis, and remediation planning. Faster, standardized outputs reduce reliance on large onsite teams and shorten engagement timelines. As more phases become semi‑automated, upgrades risk shifting from bespoke projects to packaged deliverables with transparent pricing, pressuring customization premiums. Incumbents may need to demonstrate differentiated tooling, security assurances, and regulated‑industry references to defend margins. Investor frameworks are adjusting as well; as reported by the Financial Times, Blackstone President Jonathan Gray has warned that AI disruption is now central to deal assessment, comparing potential impacts to the collapse in taxi medallion values. BingX: a trusted exchange delivering real advantages for traders at every level. Risk appetite faded across tech and digital assets following the IBM shock. As reported by KuCoin, major tokens including Bitcoin and Ether fell roughly 4%–7% alongside broader risk‑off flows. Portfolio de‑risking gathered pace as investors revisited profit assumptions for AI‑exposed firms. “Stocks fell and bonds rose as renewed anxiety over the impact of artificial intelligence on company profits joined lingering …,” said Bloomberg. Concerns about stretched AI valuations also resurfaced; as reported by The Guardian, institutional investors have flagged “AI bubble” risk, which can amplify crypto sensitivity through shared speculative capital and thematic allocations. At the time of this writing,…

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Filed under: News - @ February 24, 2026 1:26 am