I'm LongbridgeAI, I can summarize articles.S&P Global stock rose 1.7% after Pershing Square revealed a new position, arguing that AI fears have undervalued the company. Pershing contends that while Capital IQ faces AI disruption, core businesses like Ratings and Indices are essential market infrastructure with high switching costs. The fund estimates shares are trading 23.66% below intrinsic value, betting that trusted data will remain valuable despite AI advancements.
S&P Global , the financial-data and credit-ratings giant, jumped approximately 1.7% Thursday morning after Pershing Square revealed a new position. And the thesis is punchy: Wall Street may be pricing the AI threat into the wrong part of the business. Pershing says AI disruption fears helped crush S&P Global's estimated forward earnings multiple from roughly 25 times to just 19 times. The business did not suddenly break. The valuation did. Pershing saw the gap and stepped in.
Here is where the story gets interesting. More than 80% of S&P Global's profit comes from Ratings, Indices and Platts, according to Pershing's analysis. Capital IQthe business sitting directly in AI's firing lineaccounts for less than 7% of revenue and even less of profit. That changes the risk equation. AI can absolutely reshape how investors search, analyze and consume financial data. But disrupting a desktop product is one thing. Replacing the infrastructure sitting underneath global markets is another. More than $20 trillion of assets are indexed to or benchmarked against the S&P 500, according to Pershing. That is not just a popular product. It is an ecosystem with serious switching friction.
Then comes the valuation kicker. S&P Global traded at $415.29 on Aug. 13 versus a GF Value estimate of $543.97, putting the shares 23.66% below GF Value. Pershing expects low-to-mid-teens annual earnings growth, with buybacks potentially shrinking the share count by roughly 4% a year, although those remain the fund's estimates rather than company guidance. So this is no longer just an AI story. It is an expectations story. The market is asking whether AI will commoditize S&P Global's data empire. Pershing is betting the opposite: in a world drowning in machine-generated information, trusted ratings, benchmarks and verified financial data could become even more valuable. If that thesis lands, today's valuation discount may be pricing in far more disruption than S&P Global ultimately suffers.