Is there a buying opportunity for IBM stock?

Analysts see potential in hybrid cloud and AI demand and rising estimates, but risks should be evaluated.

How does IBM's performance compare to Microsoft and Amazon?

Microsoft and Amazon have outperformed the sector due to their strength in cloud and AI, while IBM has lagged.

What is Anthropic's threat to IBM?

Anthropic is developing solutions to modernize legacy COBOL systems, potentially reducing demand for IBM's services in that area.

IBM Stock Lags Industry in 3 Months: Buy Opportunity or Trap?

IBM stock has lagged the industry over the past three months, facing a threat from Anthropic in COBOL modernization. However, demand for hybrid cloud and AI, along with rising estimates, may support growth.

July 2, 2026

2 min read

Source: Zacks

IBM (NYSE: IBM) stock has underperformed the technology sector over the past three months, pressured by Anthropic's threat in modernizing legacy COBOL systems. However, growing demand for hybrid cloud and AI solutions, coupled with rising earnings estimates, may present a buying opportunity for investors.

Rating Change

No analyst rating changes were reported in the article. However, the stock's relative weakness raises the question of whether it is a value opportunity.

Analyst Rationale

Analysts note that Anthropic's COBOL modernization push could pressure IBM's legacy application services business. On the other hand, momentum in hybrid cloud and AI, along with improving estimates, may offset that headwind.

Context

IBM's three-month performance has lagged the S&P 500 Information Technology Sector. In contrast, Microsoft (MSFT) and Amazon (AMZN) have outperformed due to their strength in cloud and AI.

Conclusion

While IBM faces competitive threats in legacy modernization, its focus on hybrid cloud and AI could provide a foundation for long-term growth. Investors should weigh the risks and opportunities before making a decision.

Frequently Asked Questions

IBM stock is lagging due to the threat from Anthropic in COBOL modernization, which pressures its legacy application services business.

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This article was rewritten in Wrqti's editorial style based on information from the original source above. Content is informational only — not investment advice.