The London Stock Exchange Group PLC (LSE:LSEG) has not had the happiest of starts to the year. Its shares are down 22% in 2025 so far, making it one of the weakest performers in the sector.
A further 5% fall yesterday did little to steady nerves.
The latest wobble appears to have been triggered by fears that rivals are muscling in on its territory.
A competitor has announced a new partnership and product upgrade, which has reignited debate over whether LSEG can keep flexing its pricing power.
At the same time, some investors are fretting about what artificial intelligence could do to the economics of desktop solutions and data sales, a lucrative part of the business that underpinned the 2020 Refinitiv acquisition.
JP Morgan, for its part, thinks the worries are overdone. Its analysts argue that both the competitive threat and the spectre of AI disruption look exaggerated for now. They say the recent sell-off is not justified by the fundamentals.
Still, the market is voting with its feet. LSEG’s valuation has been steadily compressed, with faith in its growth story clearly shaken.
The challenge for management is to convince investors that its pricing remains resilient and that its data platforms can adapt to new technology rather than be undermined by it.
The company will no doubt use its next updates to push that message hard. Until then, the shares are struggling to regain momentum, and scepticism lingers.