Hari Ramachandra
Investor
Ticker
Side
Mentions
Opened
Entry
P&L
Thesis
Theme
Source
Long
Feb 28
$477.59
-5.6%
Moody's operates as a duopoly (with S&P) controlling 80% of the credit rating market, boasting 51% operating margins. The stock is down ~22% YTD due to fears that AI will disrupt its analytics business (40% of revenue). The core ratings business (60% of revenue) is a regulatory "toll bridge" that is legally mandated and unlikely to be disrupted by AI. The sell-off provides a rare entry point into a high-quality compounder, even if the P/E remains elevated at ~34x. LONG (Quality Compounder). Valuation compression (trading at 34x P/E); regulatory changes; cyclical downturn in bond issuance volumes; AI successfully eroding the analytics moat.
Moody's operates as a duopoly (with S&P) controlling 80% of the credit rating market, boasting 51% operating margins. The stock is down ~22% YTD due to fears that AI will disrupt its analytics business (40% of revenue). The core ratings business (60% of revenue) is a regulatory "toll bridge" that is legally mandated and unlikely to be disrupted by AI. The sell-off provides a rare entry point into a high-quality compounder, even if the P/E remains elevated at ~34x. LONG (Quality Compounder). Valuation compression (trading at 34x P/E); regulatory changes; cyclical downturn in bond issuance volumes; AI successfully eroding the analytics moat.
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Hari Ramachandra has 1 trade idea tracked on Buzzberg across 1 ticker since February 2026. Most covered: MCO.