Update to our Morningstar recommendation

We published a short recommendation on MORN in late September on the basis of the AI distruption being a disruptive catalyst to the business model. The stock is down around 30% since we published our note.

We maintain our bearish thesis over the medium term. Tech and information technology stocks could bounce back after a savage sell-off in recent weeks, but we think the bounce will be temporary. AI is disrupting every knowledge-economy stock, from financial services to legal and software. Morningstar has some hard work ahead if it wants to maintain its revenue base, yet alone grow it.

Be contraction will continue, as earnings decline.

The forecasts provided herein are intended for informational purposes only and should not be construed as guarantees of future performance. This is an example only to enhance a consumer's understanding of the strategy being described above and is not to be taken as Blueberry Markets providing personal advice.