Thomson Reuters Plunges 17% Intraday to Record Low, Hit by Anthropic's Legal AI Tool
Thomson Reuters shares fell as much as 17% on Tuesday, marking the largest intraday drop in its history. This came after artificial intelligence company Anthropic launched a new efficiency tool aimed at helping enterprises automate legal tasks.
Analyst comments:
Toni Kaplan of Morgan Stanley (equal-weight rating; target price $165) pointed out that although Anthropic's new tool is similar to other AI products, they believe it signals intensifying competition and poses a potential negative for Thomson Reuters.
"Most investors we have recently spoken with have an overwhelmingly bearish view on Thomson Reuters, with widespread concerns that, in the face of heightened competition among professional AI tools, the company's legal business will struggle to maintain its current growth trajectory. The entry of Anthropic may increase potential disruption risks."
Thomson Reuters remains confident in its deep roots within the legal sector, thanks to its proprietary data moat—Westlaw—which contains over a century of editorially enhanced U.S. case law and nearly 2 billion documents.
Investors generally consider Westlaw to be the highest-quality segment of the legal business.
Editor: Li Tong
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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