How to deal with the “Claude crash”: Relx should keep buying back shares, then buy more | Nils Pratley

2026-02-12 · Source: AI (artificial intelligence) | The Guardian · Field: Finance & Economics — Capital Markets & Investment Management, FinTech & Digital Financial Services · Depth: Intermediate, short

Summary

The "Claude crash" refers to a recent sharp decline in the share price of Relx, a global provider of information-based analytics, following the launch of plug-in legal products by AI firm Anthropic for its Claude Cowork office assistant. This market reaction, which also impacted other data-centric UK companies like London Stock Exchange Group and Experian, stems from fears that AI advancements will erode Relx's 34% profit margin. Relx's shares halved from a May 2025 high of £41, when the company was valued at £70bn. Despite market panic, Relx reported strong full-year 2025 results, with revenues up 7% to £9.6bn and operating profits up 9% to £3.3bn, and announced a £2.25bn share buyback, up from £1.5bn.

Key takeaway

For investors evaluating data and analytics firms amidst AI disruption, recognize that market sentiment can diverge sharply from company fundamentals. Your assessment should focus on the defensibility of proprietary data and the potential for AI to augment, rather than cannibalize, core offerings. Consider companies with strong balance sheets and confidence in their long-term growth, as they may present buyback opportunities during periods of market overreaction.

Key insights

Market fears about AI disruption can significantly impact established data companies' valuations despite strong financial performance.

Principles

• Proprietary, curated data maintains high value against generic AI tools.
• AI tools enhance existing products rather than replace core information services.

In practice

• Evaluate AI's impact on competitive moats for data-driven businesses.
• Consider share buybacks when market valuation disconnects from company confidence.

Topics

• AI Disruption
• Anthropic Claude
• Relx Financials
• Proprietary Data
• Share Buybacks

Best for: AI Product Manager, Product Manager, Entrepreneur, Investor, Business Analyst, Executive

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Editorial summary, takeaway, and curation by AIssential. Original article published by AI (artificial intelligence) | The Guardian.