45 place 0

999 IBM's $40B stock wipeout is built on a misconception: Translating COBOL isn't the same as modernizing it

VentureBeat
VentureBeat · 02/24/2026 17:00 EDT

On Tuesday, Anthropic published tools that let Claude read, analyze and translate legacy COBOL into modern languages like Java and Python. By the end of the trading day, investors had wiped roughly $40 billion from IBM's market cap — the company's biggest single-day drop in 25 years — pricing the announcement as an existential threat to IBM's mainframe business.The reaction was swift. It was also built on a fundamental misreading of why enterprises run mainframes in the first place.IBM's COBOL is 66 years o

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