Anthropic Announcement Wipes Value Off Data Stocks

Data stocks took a beating with news of new functionality released in Claude Cowork for legal research. 

Claude is the invention of Anthropic, the AI company founded in 2021 by ex Open AI employees, including San Francisco-born Dario Amodei and Daniela Amodei.

Big investors in Anthropic include Amazon, who invested $4bn in 2023, later doubling this in 2024. Anthropic uses AWS for cloud provision.

On Wednesday 4 February, Gartner stock dropped over 20%, as did IP-management software firm Clarivate. NIQ Global Intelligence, formerly Nielsen IQ, that provides consumer insights, also dropped almost 20%.

Gartner's cousin, Forrester, dropped 12%, potentially as its business decline was already priced in. FactSet dropped 10%.

S&P Global dropped 11.2%. That is despite historical investments in AI, including Kensho in 2018. Kensho specialized in NLP and machine learning for financial data.  Some of S&P's current work involves interfacing with LLMs - a product win for S&P but a not a financial one - that cash goes to AI companies.

LSEG dropped 9.72%. Around 60% of their revenue can be said to be data-driven revenue, coming from the Data and Analytics segment. The rest comes largely from trading services.

S&P Drops almost 9% in "Flash Crash"

S&P 500 dropped almost 9% on Thursday 6 May (birthday of Nehru) with fears that a trading error could be to blame. According to the FT, this led to the wipeout of billions from portfolios. BlueTrend ($10bn computer-driven fund) dropped 7.57% in 1st week of May, AHL $20bn dropped 3.3%. Renaissance fell 3.6%. Quant funds didn't actually do as bad as some long-short equity funds. $2.2bn Odey European fund fell 8.68%. added to "flash crash" is uncertainty over the EU's 750bn EUR bail-out package.

S&P 500 -38.5% (worst perf since 1931), FTSE -31.3% for 2008

According to S&P all sectors performed poorly in 2008. The least worst sector was consumer staples which was down 18%. Biggest winner on S&P in 2008 was consumer staples firm Family Dollar Stores (NYSE: FDO). This was the worst year for the S&P since 1931, the middle of the Great Depression.

Citi's bosses said top execs won't take bonuses. They also sold off their Global Services Business to TCS for $512m. KBC announced it would not pay any bonuses in 2010 for earnings in 2009. KBC received 3.5bn EUR government aid in October, together with Fortis, Dexia and ING.

FTSE Trading closed at 12:30 GMT for Wednesday 31 Dec 2008. Its value was 4,434 points, down from 6,457. HBOS and RBOS have lost roughly 90% of their value. Whittard of Chelsea (formerly owned by Iceland's Baugur investors) has been sold over the Christmas period for an undisclosed sum to EPIC private equity partners (who are into MBOs and MBIs). They have 130 stores selling tea, coffee and crockery. Overexpansion? Bad outlets? You decide.