Q: Is this a blue chip company being repriced?
Is this AI disrupting the business case that TRI.ca has enjoyed for many many years?
Is this AI disrupting the business case that TRI.ca has enjoyed for many many years?
5i Research Answer:
Investors are now pricing in risks for TRI that were not present in the past. We don’t think AI will affect TRI’s business anytime soon, if ever. The AI disruption looks quite similar to the transition to the cloud a few years ago. Investors may be fearful now, but some companies may eventually become stronger because of it.
Time will tell in a few years whether this period marks an opportunity to add to a high-quality software name like TRI or a sign of deterioration in the software business model. We think it is far more likely to be an overreaction.