Jim Cramer on International Business Machines: "Astonishing Decline for a Company That Is Actually Doing Quite Well"

International Business Machines Corporation (NYSE:IBM) is one of the stocks Jim Cramer commented on. Cramer noted the stock’s recent decline, as he remarked:

Yesterday, Anthropic put out something that sounded like it could hurt IBM, and IBM stock lost over 13% like this. It was one of the worst declines in ages. IBM has the same problem as the hard-hit enterprise software cohort. It’s difficult to understand because some of its businesses are complicated. It was an astonishing decline for a company that is actually doing quite well.

Unfortunately, all the sellers needed to know is that there’s a successful software company, or in the case of IBM, a hardware company that sells software, Anthropic will mimic it for less money… just using its AI. Customers will pause their purchases to see what Anthropic can do, or maybe just ask vendors for shorter contracts for less money. Either way, it’s bad news. Could it free some IBM business? I guess people think that. Suddenly, once unassailable companies with great moats seem like they might not, might be worth nothing, yes, nothing.

International Business Machines Corporation (NYSE:IBM) provides software, consulting, and cloud and on-site technology solutions, along with financing to help clients use its products.

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