During the lightning round of the August 6 episode of Mad Money, a caller asked Jim Cramer for his perspective on Thomson Reuters Corporation (NASDAQ:TRI). Cramer responded:
Man, that stock is always cheap, and that’s the problem. It’s like a value trap. I think maybe it could bounce a little bit. I just, I do not like that sector because there’s just too much competition and not enough intellectual property.
Looking Back at the Nasdaq 100 Sell-Off and AI Competition Fears
Previously, Cramer’s skepticism toward Thomson Reuters Corporation (NASDAQ:TRI) was built on warnings regarding how artificial intelligence continues to pressure such stocks. On June 9, when a caller questioned whether Wall Street was treating the company unfairly by pricing it like a legacy publisher, Cramer replied:
I’ll tell you the truth… Look, I understand why you think that Wall Street is wrong, but the problem is that this is media, and media has been decimated by all things AI, and I can’t get behind it. It’s just too hard for me. I don’t want to do it.
This sentiment mirrors his analysis from the April 1 episode, where he pointed out that Thomson Reuters Corporation (NASDAQ:TRI) ranked among the notable decliners as data and information services faced increasing artificial intelligence competition fears. Cramer stated:
The eighth-worst name in the Nasdaq 100 was Thomson Reuters, down nearly 32%. And this is another example of a business services play getting hit by AI competition fears. Thomson makes software that compiles financial data, which we use here at Mad Money, and they also own Westlaw, a similarly essential online legal research service. You don’t need Westlaw, though, if you have a system that can comb through all the decisions they’ve written in just a few seconds. Can Claude do all the things these platforms do? Wrong question. The right question is, do you want to stick with Thomson Reuters while we wait to find out? Money managers won’t do that.
Resilience in the Face of AI Disruption Fears
Despite Cramer’s bearish stance, proponents and analysts highlight strong underlying fundamentals. Thomson Reuters Corporation (NASDAQ:TRI) recently delivered a solid Q2 2026 report, posting an adjusted EPS of $0.99, beating estimates by $0.03, and revenue of $1.95 billion, up 9% year-over-year. Driven by 10% organic growth in its core “Big 3” segments (Legal, Corporates, and Tax & Accounting), management raised its full-year organic revenue growth outlook.
Backing this momentum, on August 6 (as reported by The Fly), Scotiabank analyst Maher Yaghi maintained an Outperform rating on the stock, noting that its valuation remains attractive relative to long-term growth. However, the firm lowered its price target from $138 to $135. Bulls note that rather than being disrupted by artificial intelligence, the company is successfully embedding fiduciary-grade tools like CoCounsel into trusted platforms like Westlaw, securing high retention and pricing power across professional markets.
Smart Money Trends and Valuation
According to Insider Monkey’s data, hedge fund interest in Thomson Reuters Corporation (NASDAQ:TRI) has slightly ticked higher, with 26 elite hedge funds holding a stake in the stock in the first quarter of 2026, up from 24 in the prior quarter. Marshall Wace LLP initiated a position in the stock in the first quarter and was the most prominent shareholder of the company. Moreover, the stock trades at a forward P/E ratio of 22.73, with a low short interest of 3.19% of shares outstanding. The numbers indicate steady institutional backing and limited bearish positioning.
While Cramer remains cautious about competitive pressures and labels the stock a potential value trap, the company’s robust Q2 numbers, strategic monetization of its global print division, and aggressive push into fiduciary-grade AI tools present a compelling counter-narrative.
While we acknowledge the risk and potential of TRI as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than TRI and that has 10,000% upside potential, check out our report about this cheapest AI stock.
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