Shares of RELX PLC declined sharply on Friday, dropping 4.6% to 2,145 pence, as the information and analytics group underperformed a rising broader market. The stock now trades close to its lowest level in the past year, having retreated significantly from its 2025 peak of 4,205p.
AI Concerns Weigh on Sentiment
Investors continue to reassess the company's defensive positioning as generative artificial intelligence tools increasingly automate legal research and business analytics tasks—core revenue streams for RELX. The sell-off occurred despite a positive session for the FTSE 100 index and more accommodative signals from the Bank of England, marking the fourth consecutive week of declines for the stock.
Heightened selling pressure followed recent product launches from AI developers targeting professional services. "The competitive moats that once protected these businesses appear narrower today," noted James St. Aubin of Ocean Park Asset Management in comments to Reuters. "While this may be an overreaction, the underlying threat is genuine."
Buyback Activity Continues
RELX executed another share repurchase on February 6, acquiring 465,361 shares through UBS AG at prices ranging from 2,132p to 2,203p. Since January 2, the company has bought back approximately 8.8 million shares, demonstrating ongoing capital return commitments despite market volatility.
Diverging Analyst Views
Not all observers foresee dramatic disruption. UBS analysts estimate that approximately 88% of RELX's revenue faces minimal immediate threat from large language models. They note that LexisNexis, a key subsidiary, contributed about 12% of operating profit in the most recent fiscal year.
Nevertheless, the bearish scenario remains clear: if clients accelerate budget reallocations toward AI solutions or if RELX must increase spending to defend its market position, valuation multiples could face further pressure.
Focus Turns to February 12 Results
Market attention now shifts to the company's full-year 2025 financial report scheduled for February 12. Investors will scrutinize management's guidance and their assessment of how AI adoption is reshaping customer demand and profit margins across RELX's business segments.