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Why MSCI Stock Is Plummeting Lower Today

MSCI's second-quarter earnings were fine, but the stock is selling off after missing analysts' expectations.

Why MSCI Stock Is Plummeting Lower Today

Published July 21, 2026 · Category: Finance

Overview

Shares of global index and analytics provider MSCI (NYSE: MSCI) are down 10% today as of 3 p.m. ET on Tuesday after the company reported second-quarter earnings that disappointed the market.

While sales and adjusted earnings per share (EPS) grew 12% and 19%, respectively, these totals came in shy of Wall Street's expectations. Making matters worse, MSCI slightly raised its 2026 expense guidance as it integrates its new acquisition, First Street, a climate-risk modeling firm.

Details

Ultimately, I don't think today's results are anything to panic about, and I think the market's reaction might be overdone. While MSCI may have previously been priced for perfection in recent years -- frequently trading above 40 times free cash flow (FCF) from 2020 to 2024 -- it currently trades at a much more reasonable 29 times FCF. At this valuation, I think MSCI's Q2 results were perfectly fine, maybe not world-beating, but fine.

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Source

Originally published at www.fool.com.

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Disclaimer: This article is for informational purposes only and does not constitute investment advice. Data may be delayed up to 15 minutes. Past performance is not indicative of future results. Consult a licensed financial advisor before making investment decisions.