IBM Stock Today: Shares Hammered by AI Disruption Fears — Is This a Buy-the-Dip Moment?
IBM stock has been one of the most dramatic stories on Wall Street in February 2026. After surging 35% in 2025 and entering the new year at historic highs, shares have cratered more than 22% year-to-date in one of the company's worst monthly performances in a quarter century. The selloff is being driven by a specific and structural threat — and markets are still debating whether the damage is done or whether more pain is coming.
IBM Stock Price Today: February 25, 2026
IBM closed at $229.32 on February 24, up $5.97 (+2.67%) on the day. In pre-market trading on February 25, shares pushed to $232.79, a gain of $3.37 (+1.47%). The modest bounce follows several bruising sessions that wiped out more than a year's worth of gains in less than four weeks.
Key IBM stock metrics at a glance:
| Metric | Value |
|---|---|
| Last Close (Feb 24) | $229.32 |
| Pre-Market (Feb 25) | $232.79 |
| 52-Week High | $324.90 |
| 52-Week Low | $214.50 |
| Avg Analyst Price Target | $324.95 |
| YTD Change | -22.14% |
| Dividend Yield | ~2.94% |
| Next Earnings | April 22, 2026 |
What Crashed IBM Stock: The Anthropic COBOL Threat
The most violent move came in a single session when Anthropic announced that its Claude Code tool is positioned as an ideal solution for code modernization, including COBOL legacy system work. That announcement hit IBM where it hurts most. A significant portion of IBM's consulting revenue comes from exactly that kind of work — helping large enterprises modernize aging mainframe and legacy codebases.
IBM plunged 13.2% to $223.35 in that session. The stock now sits more than 20% lower year to date and well below its 50-day average. Investors fear margin pressure if clients accelerate code conversion with fewer billable hours. The single-day drop is estimated to be among the largest in IBM's history over the past 25 years.
The Case for IBM: A 41% Discount to Analyst Targets
IBM is traded at $229.32 as of February 24, 2026, while the average analyst price target sits at $324.95 — a gap of roughly 41.7% between where the stock trades and where Wall Street thinks it belongs.
Under CEO Arvind Krishna, IBM shed its managed infrastructure business — spun off as Kyndryl in 2021 — and doubled down on software, consulting, and its Watsonx AI platform. That transformation appeared to be working heading into 2026, with management raising guidance after a strong third quarter. Bulls argue the selloff is an overreaction and that IBM's deep enterprise relationships give it a durable moat even in an AI-accelerated world.
What Analysts Are Saying About IBM Stock
On February 25, 2026, UBS analyst David Vogt upgraded IBM from a Sell to a Neutral rating, maintaining a price target of $236.00. Evercore ISI Group maintained its Outperform rating with a price target of $345.00. Wedbush also maintained an Outperform rating with a $340.00 target. RBC Capital maintained Outperform with a $361.00 price target. JP Morgan holds a Neutral rating with a $317.00 target.
IBM Technical Picture: Oversold Signals Emerging
IBM stock today shows capitulation traits: RSI at 26.98, Stochastic %K at 6.54, and Money Flow Index at 18.34 are all in oversold territory. Price sits well below the 50-day moving average at $295.58 and the 200-day at $280.40. The 52-week low at $214.50 is the next major downside reference. Oversold readings at these levels have historically preceded rebounds, though structural disruption stories can remain depressed longer than pure technical traders expect.
This article is for informational purposes only and does not constitute financial or investment advice. Always consult a qualified financial advisor before making investment decisions.
