The LSEG share price is in a steep freefall as concerns about its business continue. London Stock Exchange stock tumbled to a low of 7,180p, its lowest level since March 2023. It has dropped by over 40% from its highest point in February 2025.
Why the LSEG share price has crashed
The London Stock Exchange stock price has crashed in the past few months, moving from a high of 12,025p to a low of 7,200p.
There are two primary reasons why the stock has been in a strong downward trend this year. First, there are concerns that a major part of its business will be disrupted by the fast-growing artificial intelligence tools, especially those made by companies like Anthropic and OpenAI.
The main concern is that these AI companies have come up with tools that may disrupt some of its businesses. That’s because, while the London Stock Exchange is known for running the biggest exchange in London, its most important business is in the data industry.
Anthropic, the creator of Claude, unveiled a new tool allowing customers to simplify the legal industry. The plugin can help companies speed up the legal process by automating NDA triage, contract review, and compliance workflows.
While Anthropic’s plugin may disrupt the industry, we believe that it will be a companion to LSEG’s solutions. This means that clients will likely not end their contracts with LSEG.
LSEG share price has also crashed because of the ongoing IPO drought in London. There have been no major IPOs in the past few months. Still, on the positive side, some companies like Monzo, Revolut, and Starling Bank may opt to go public this year. Some, however, may opt to list in the United States.
London Stock Exchange Group’s business is doing well
The most recent results showed that the company’s business is doing well. Its data and analytics business made over $982 billion in revenue in the third quarter, up by 2.9% YoY.
The company’s FTSE Russell business made £241 million, up by 7.1% YoY, while the risk intelligence grew by 9.9% to £144 million.
Additionally, the management maintained its strong forward guidance. Its guidance is for its organic income growth of between 6.5% and 7.5%. It also expects that the adjusted EBITDA will increase by between 75 and 100 basis points.
LSEG has also announced a strategy to accelerate its shareholder returns. It deployed over £3.5 billion to these returns and strategic acquisitions.
LSEG share price technical analysis
The weekly timeframe chart shows that the LSEG stock price has crashed in the past few months. It has dropped from a high of 12,025p in February last year to the current 7,180p.
The stock has moved below the key support level at 8,125, its lowest level in September last year. It is about to form a death cross pattern, which happens when the 50-week and 200-week moving averages cross each other.
Therefore, the most likely scenario is where the stock will continue falling as sellers target the key support at 5,918p, its lowest level in February 2022. The stock will then bounce back later this year or in 2027 as the AI fears ease.
The post Is it safe to buy the dip as the LSEG share price implodes? appeared first on Invezz
