Did FactSet really deserve a 50% drop?

☀️ The FactSet $FDS thesis is now available for anyone interested

Did this company really deserve to be down 50%? 🩸

The market usually makes two mistakes: overvaluing mediocre businesses or undervaluing great franchises when a real threat emerges.

I think the latter is happening with FactSet.

The current narrative assumes AI will weaken its position, erode its pricing power and turn part of its product into a commodity.

That could happen, sure, but the opposite could also happen: AI could increase the value of what FactSet has spent decades building—a critical layer of reliable, standardized, licensed data integrated into workflows where mistakes are costly.

Its advantage isn’t any single feature, but the combination of data, integrations, an open ecosystem, very high retention and strong switching costs.

There are real risks, but the market seems to be pricing in almost nothing but the bear case.

And that’s the interesting part: FactSet doesn’t need a perfect scenario, just for reality to be a bit better than the price suggests today.

That’s why I’ve bought a small position for my portfolio 💰