The Motley FoolPublished 2026-10-23
“Is the AI Bubble Popping?”
$MSCIBullish
MSCI is a long-term winner: its stable index business generates cash and its analytics/AI investments should become table stakes as AI grows. At 30 times earnings some growth is priced in and it is not cheap, but the long-term case holds.
So, Dan, I'm going a different direction. I'm going with shares, taking a look at financial data firm MSCI. Ticker, you guessed it, MSCI had a great week. Shares up nearly 10% after the company delivered a solid top and bottom line beat.
So, what does MCI do? They run more than 300,000 equity and fixed income indexes. They license them to mutual funds, ETFs, make money off of that sort of a publishing business.
They also sell a lot of analytics tools for risk managers. They have a pretty good suite of AI tools for professional investors kind of to modernize the business.