(update: added final paragraph on new competition in Denmark for Karnov)
European software stocks are tumbling in today's trading after the emergence of new AI models sparked concerns that established companies will find it increasingly difficult to defend their business models. According to Reuters, the selling pressure has also spread to data analytics and advertising companies, as investors now question who will truly emerge as winners from AI.
In Sweden, Karnov is down more than 15 percent. The company provides information and workflow solutions, primarily to professionals in the legal, tax, and accounting sectors.
A key trigger for the negative trend among European software stocks is said to be Anthropic's new legal plug-in for its Claude chatbot.
Two European stocks taking significant hits are Relx and Wolters Kluwer, down just over 13 and 10 percent, respectively. Another major company losing ground is SAP, which has dropped 2.5 percent following a weak cloud forecast.
Advertising agencies are also under pressure in today's trading. One example is Publicis, which has plunged more than 7.6 percent after its quarterly report.
A Barclays survey reviewed by the news agency highlights the sector as particularly vulnerable to AI-driven competition.
Additionally, Dagens industri reports, citing Danish media, that the association Open Law aims to make around 40,000 court rulings and decisions freely available to everyone. In 2024, Denmark was Karnov's third-largest market, accounting for 23 percent of the group's revenues.
Karnov Group AB (publ) is a Sweden-based information provider. The Company specializes in the areas of legal, tax and accounting, and environmental, health and safety. It provides a range of products and services through its portfolio of brands to public and private customers, such as different kind of firms, courts, universities, public authorities and municipalities, among others. It operates across two main segments: Online sales and Offline sales and services. The Online sales segment provides subscription-based digital solutions and support. The Offline sales and services segment publishes and sells printed books and journals and hosts legal training courses.
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