Lumentum rose about 9% last week and FactSet fell about 14%. Both moves were the same AI trade
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The story behind it
The week's best and worst stocks were the same AI trade pointing in opposite directions Read the edition →On the calendar
The US releases that move markets, in New Zealand and Australian time. Economic calendar →
The story behind it
The week's best and worst stocks were the same AI trade pointing in opposite directions Read the edition →On the calendar
The US releases that move markets, in New Zealand and Australian time. Economic calendar →What the chart shows
The S&P 500's winners and losers last week came from the same argument about artificial intelligence. Lumentum, Hewlett Packard Enterprise and Ciena, which sell optical modules, servers and networking gear into datacentres, rose about 9%, 7.2% and 4.2%. FactSet and PTC, which sell software, fell about 14% and 12.6%.
The logic is easy to state. If a general-purpose model can read the filings and build the spreadsheet, a specialist terminal like FactSet's is less special. Lumentum and Ciena never have to argue about whether a model might replace them, so the money has gone to whoever supplies the picks and shovels.
The other side is that no large software company has yet visibly lost customers to a chatbot. Until one does, the chart shows what investors fear, and fear reprices faster than revenue does. Sharespective's Monday edition sets out FactSet's own answer to the worry.
The numbers
Share price change over the week for three of the S&P 500's five best performers and its two worst, as the newsletter rounded them. Datacentre hardware rose; software fell.
| Value | |
|---|---|
| Lumentum | +9% |
| Hewlett Packard Enterprise | +7.2% |
| Ciena | +4.2% |
| PTC | −12.6% |
| FactSet | −14% |
How we make these charts: one chart a day from a story in the edition, drawn from the figures the story names and checked against the sources named on the chart before it is published. General information only, not financial advice.
