Key insights
- The author expresses a bullish outlook on RELX due to its valuable private domain data and potential to capitalize on the growing demand for AI middleware. They believe the stock offers downside protection due to its low volatility and pays a decent dividend, while also having the potential for significant upside as the AI middleware market develops. The author discloses a personal investment in RELX.
This is not a Reddit meme stock. They own Lexis Nexis plus and other private domain data companies. Any company with valuable private domain data is going to cash in because they can upsell paywalled AI access to it. Think of these guys as owning beach front real estate when the ocean is the perfect temperature and everyone is suddenly jumping in. There’s a wave of this private “AI middleware” secondary market coming.
Also love this because you can’t get too hurt. It’s not a volatile stock so there's downside protection but the prospect of skyrocketing when this AI middleware craze starts hitting. And they pay a decent dividend too.
You can pull their numbers yourself. They're solid. Historically, they've compounded for decades, they are at a discount because of the mistaken thesis that AI would replace it, and now they are positioned for greatness.
My position: 401 shares purchased Friday at market open.