The London Stock Exchange’s 40% crash is drawing vultures – as an AI threat looms
The London Stock Exchange Group (LSEG) has become the latest target for activist investors amid a brutal 40% plunge in its share price over the past year.
The stock, which peaked at around 12,025p in February 2025, has cratered to approximately 7,180p as of early 2026, battered by sluggish listings, delistings via takeovers, and mounting fears that AI could upend its lucrative data business.
This downturn has caught the eye of hedge fund heavyweight Elliott Management, which has quietly amassed a significant stake in the company, sparking a rebound in shares and speculation about impending shake-ups.
Elliott’s move, first reported by the Financial Times, underscores the vulnerability of LSEG at a time when the exchange is repositioning itself as a data powerhouse rather than just a trading venue.
The activist fund, led by billionaire Paul Singer and known for aggressive campaigns at companies like BP and Southwest Airlines, has already engaged in talks with LSEG’s leadership to ‘engineer an improvement’ in performance.
Reports suggest Elliott is pushing for fresh share buybacks, cost discipline, and a sharper focus on closing the gap with rivals like Bloomberg and ICE, without advocating for a full breakup or sale of the business.
Dan Coatsworth, Head of Markets at investment platform AJ Bell, weighed in on the development, noting that activist investors like Elliott thrive on undervalued assets.
“Activists take stakes in a business so they can flex their muscles and demand an audience from management,” Coatsworth explained. “Their typical approach is to push for change, whether that is new leadership, asset sales, or a reallocation of capital. The activist’s purpose is to buy cheap, drive up the share price and then get out for a profit.”
He highlighted LSEG’s exposure to AI disruption, especially after its $27 billion acquisition of Refinitiv in 2021, which transformed it into a data analytics giant. Refinitiv’s platform offers deep dives into financial accounts, historical pricing, news feeds, and trading activity, data that AI tools could theoretically scrape from public sources, though Coatsworth doubts they can match Refinitiv’s depth and reliability.
The spectre of AI
The AI spectre has intensified recently, with LSEG’s shares tumbling 13% earlier this month after AI firm Anthropic unveiled a tool for corporate legal departments that pulls data from filings and reports, raising alarms about potential erosion of demand for proprietary data services.
This ripple effect has hit broader sectors, including UK wealth managers like AJ Bell and Quilter, whose stocks dropped 2-6% amid fears of AI-enabled automation disrupting advisory and data roles. Analysts at Barclays have dubbed LSEG an “AI loser” in contrast to “AI enablers” like chipmakers, fueling the selloff.
LSEG’s underlying operations show resilience despite the gloom. In its Q3 2025 trading update, the group reported 6.4% growth in total income (excluding recoveries), led by double-digit gains in Risk Intelligence and FTSE Russell divisions.
It raised EBITDA margin guidance to a 100 basis point increase for FY2025 and committed to £2.5 billion in share buybacks from March 2025 to February 2026, including a fresh £1 billion tranche.
As Elliott makes it move, all eyes are on LSEG’s upcoming annual results and how CEO David Schwimmer navigates this activist scrutiny. With AI’s shadow looming and London’s IPO pipeline still anaemic, the vultures circling could force bold move, or risk further erosion in a market hungry for revival.
