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Why IBM Shares Plunged by More Than 13%

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Why IBM Shares Plunged by More Than 13%

Yesterday, shares in IBM Corporation opened above $254 but closed below $224. By some estimates, this marked the company’s largest single-day decline in the past 25 years. Since the start of February, the stock has fallen by roughly 27%, its worst monthly performance since 1968.

Why Did IBM’s Share Price Drop?

The main trigger was an announcement by Anthropic about the launch of a new AI tool, Claude Code, designed to modernise legacy COBOL code.

This is particularly significant for IBM, as much of “Big Blue’s” business is tied to mainframes processing transactions for banks and government institutions in COBOL. Traditionally, upgrading such systems required “armies of consultants” and multi-billion-dollar budgets.

The new AI solution promises to automate this process, making it faster and more cost-effective. This not only poses a direct threat to IBM’s services and support revenues, but also reignites concerns that AI could reshape the entire technology sector, rendering established business models less sustainable.

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Technical Analysis of IBM Shares

Throughout 2025, IBM stock traded within an ascending channel, but the psychological $300 level proved to be strong resistance. The price attempted to secure a foothold above it for several months, without success. The earnings release on 28 January turned into a bull trap and marked the beginning of an extraordinary sell-off, accompanied by rising volume on bearish candles — a sign of market weakness.

At the same time, several major analysts (including those at Goldman Sachs and Jefferies) have maintained or reiterated their “Buy” ratings. Their optimism is based on the view that panic surrounding Anthropic’s tool may be overstated, while IBM’s financial fundamentals remain solid.

Although the sharp downward momentum may continue in the near term, a support zone could emerge where several technical levels converge:

→ the psychological $200 mark;
→ the 2025 low around $215;
→ the lower boundary of an increasingly clear channel (shown in red).

Buy and sell stocks of the world’s biggest publicly-listed companies with CFDs on FXOpen’s trading platform. Open your FXOpen account now or learn more about trading share CFDs with FXOpen.

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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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Crypto World

US Spot Bitcoin ETFs Hit Strongest Gains Since February

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US Spot Bitcoin ETFs Hit Strongest Gains Since February

US-listed spot Bitcoin exchange-traded funds (ETFs) have renewed the pace of inflows, recording their largest daily flows in weeks.

Spot Bitcoin (BTC) ETFs posted $471 million in inflows on Monday, the largest daily inflow since Feb. 25, when the funds attracted $507 million, according to SoSoValue.

The inflows came as the Bitcoin price briefly approached $70,000 before retreating below $69,000, according to CoinGecko data.

The volatility occurred amid ongoing geopolitical pressure as well as renewed concerns over Bitcoin’s quantum resistance, while the Crypto Fear & Greed Index remained in “Extreme Fear” at 13.

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BlackRock’s IBIT leads the inflows at $182 million

BlackRock’s iShares Bitcoin Trust ETF (IBIT) led the inflows with about $182 million, followed by the Fidelity Wise Origin Bitcoin Fund (FBTC) with $147 million, according to Farside data.

The ARK 21Shares Bitcoin ETF (ARKB) ranked third with nearly $119 million, marking its largest daily inflow since July 10, 2025.

On Monday, the blockchain analytics platform Arkham observed that ETF outflows slowed to a halt last week, with major issuers selling just about $16.6 million in Bitcoin. ARK Invest’s ARKB ETF purchased the most BTC, or $34 million in a week, it said.

Source: Arkham

Following the three trading sessions in April so far, US spot Bitcoin ETFs recorded about $307 million in net inflows, bringing total assets under management (AUM) back above $90 billion.

Related: Strategy adds $330M BTC as paper losses top $14.5B in Q1

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In March, Bitcoin ETFs posted $1.3 billion in inflows, marking the first monthly gain after outflows of $1.61 billion in January and $207 million in February.

Ether ETFs record $120 million in inflows

US spot Ether (ETH) ETFs followed the recovery in sentiment on Monday, recording $120 million in inflows and offsetting $78 million in outflows from the prior two trading sessions.

Ether ETFs posted three consecutive months of losses, bringing total outflows for the period to about $770 million.

Other altcoin ETFs saw muted activity, with XRP (XRP) recording zero inflows on Monday, while Solana (SOL) ETFs posted about $247,000 in inflows.

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Magazine: Your guide to surviving this mini-crypto winter