Moody's Corporation (MCO) has experienced significant fluctuations in its stock price, particularly a drop of over 19% earlier this year due to fears surrounding AI's impact on software and data businesses. However, the stock has since recovered to around $514.53, which is approximately 6% below its 52-week high of $547.
Notably, Berkshire Hathaway has maintained its investment in Moody's, holding about 24.7 million shares valued at roughly $11 billion. The company's revenue for Q3 was $2.02 billion, with adjusted earnings per share rising to $4.14, although both figures fell short of analyst expectations.
Moody's has two main business segments: Moody's Investors Service, which generated $1.09 billion in revenue, and Moody's Analytics, which brought in $936 million. The latter segment is increasingly important as AI technologies rely on proprietary data, which Moody's provides. The company has seen a surge in demand for its data, with users of its Model Context Protocol quadrupling in three months.
Despite the overall flat performance year-to-date, Moody's is pressing against a resistance level, and a breakout above $547 could signal a positive trend. Investors should monitor key support levels around $475 and $455 to gauge potential risks