IBM Stock Loses 13% and $30B Market Value as AI Threatens Legacy Business; Firms Partner on Voice AI
IBM stock plunged 13%, erasing $30 billion in market value after Anthropic launched Claude Code, which automates modernization of COBOL code, leaving Tudor Investment’s roughly 100,000-share position (average $289.19) about 20% underwater. IBM also partnered with Deepgram to integrate advanced speech-to-text and text-to-speech capabilities into its watsonx Orchestrate platform.
1. Sudden 13% Stock Plunge
IBM shares fell 13% in a single session, erasing approximately $30 billion of market capitalization after Anthropic introduced Claude Code, a generative AI tool for modernizing legacy COBOL codebases.
2. Pressure on Tudor Investment Bet
In the fourth quarter of 2025, Tudor Investment acquired about 100,000 IBM shares at an average cost of $289.19, valuing the stake at $29.6 million; the stock now trades roughly 20% below that entry price.
3. Legacy Modernization Business Under Threat
Claude Code accelerates modernization timelines from months to hours, challenging IBM’s enterprise consulting services and raising concerns over the durability of its legacy system upgrade moat.
4. Deepgram Partnership Enhances Voice AI Offering
IBM will embed Deepgram’s real-time speech-to-text and text-to-speech capabilities into its watsonx Orchestrate platform, enabling scalable transcription, dialect support and custom voice tuning for enterprise AI workflows.