The Globe and Mail reports in its Saturday, Sept. 20, edition that Constellation Software's share price has fallen nearly 17 per cent since early May, raising concerns among investors about the impact of artificial intelligence on its diverse businesses. The Globe's David Berman writes that this decline has put the stock underwater for the year. In response to shareholder concerns, Constellation will host a webcast on Monday to discuss AI's potential effects on its operations. Constellation founder Mark Leonard says: "AI has created uncertainty for our employees, shareholders and customers. We felt that the discussion would inevitably turn from the general to the CSI-specific, so we suggested a webcast where all shareholders would be able to pose questions." The stock has only experienced four notable dips of 20 per cent or more in the past decade, all brief. This suggests strong confidence in Constellation's strategy of building a global empire of small software companies using cash from its current holdings.
Investors are clearly rattled, though.
The bullish outlook hinges on investors' confidence in the company's ability to navigate uncertainty with its diverse niche software and strong customer relationships.
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