Another brutal day gripped Wall Street stocks on Monday. The Dow lost over 800 points after re-pricing the impact of the Supreme Court’s ruling against tariffs. PCE inflation, along with weak GDP data last week, added uncertainties.
That is the relatively good news. Trouble worsened for database companies. Threats that Anthropic’s Claude AI could of AI could modernize COBOL coding sent IBM (IBM) down by 13.15%. IBM stock lost ~25% YTD, erasing a steady uptrend that started last August.
In sympathy with IBM’s sell-off, MongoDB (MDB) dropped by 11.4% on Monday, while software application firm Datadog (DDOG) closed at a new low at $102.61.
Fearful investors exposed to the software sector failed to recognize that Anthropic will likely file for a public listing. It is in Anthropic’s best interest to make sensational claims. Claude did not prove that its product would solve every problem thrown at it and would revolutionize everything.
Those who believe Claude may do that would need to take a risk: recode legacy COBOL systems using AI.
After IBM experienced the worst share performance in 34 years, investors might consider speculating on the stock at these levels.
Adobe (ADBE) closed at a fresh yearly low, too. SAP (SAP), Intuit (INTU), and ServiceNow (NOW) are some of the software stocks falling alongside IBM.
