London Stock Exchange Group (LSEG) stocks fell 9.7% on Feb. 3 due to broader selloff in software and financial data stocks triggered by Anthropic’s new AI plug-in. LSEG derives 61% of revenue from data-related businesses post Refinitiv acquisition in 2021. Partnership with Microsoft for AI-driven tools has been slow, lacking clear growth targets.

LSEG integrates with OpenAI and Anthropic, allowing AI agents to utilize their datasets for financial analysis prompts. Users need an LSEG subscription for AI access. Morningstar maintains GBX 11,200 per-share fair value estimate for LSEG. Strength lies in data ownership, not distribution. AI agents and LLM users are viewed as customers, not competitors.

As financial data consumption shifts to AI agents, data depth, breadth, and quality will be key differentiators. LSEG owns unique datasets that are hard to replicate, building on their position as a critical financial infrastructure provider. AI advancements will increase the value of providers with exclusive data sets.

Read more at Morningstar: London Stock Exchange Group: AI-Related Selloff Overlooks Value of Data Ownership