Last week we shared our views that the sell-off in the stock of tax-prep and accounting software leader Intuit was unjustified and likely to reverse soon. Today, we’re going to look at another leading software company, which also found itself on the wrong side of the AI hype. In its annual reports, FactSet Research Systems says it delivers financial intelligence to investment professionals worldwide. It counts Bloomberg and The Big Three rating agencies as its biggest competitors, among others.
But with the rise of agentic AI, the market decided we’ll no longer need data and thinking to make investment decisions, because a chatbot will do it for us. As a result, FactSet stock plunged from an all-time high of $500 per share in late-2024 to $185 in February, 2026, for a 63% crash in just fifteen months. In our opinion, however, a chatbot is only as good as the person using it and data is precisely what it needs to be useful at all. So when it comes to FactSet, we’re ready to bet against the market. Is now the time to do so, though?
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Not quite, according to the Elliott Wave chart above. It reveals that the recent decline likely stands for wave C of an expanding flat correction, which began in 2022. Wave A was a simple (a)-(b)-(c) zigzag, followed by a (w)-(x)-(y) double zigzag in wave B with a triangle in wave (x), marked a-b-c-d-e. If this count is correct, a five-wave impulse pattern should eventually form in wave C. Its fifth wave is still missing and likely to drag FactSet to a new low near $170, before the pre-2022 uptrend can resume. Not that from a fundamental and valuation perspective the stock is not attractive enough already at $255, but it will be irresistible under $180.
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