This stock that sold off in the ‘SaasPocalypse’ is back at all-time highs. How Josh Brown is trading

In the early days of the so‑called “SaaSpocalypse,” investors hammered financial‑information providers as if all data were destined to become free. That narrative has since reversed, and MSCI Inc. (MSCI) — the provider of the indices that benchmark nearly $23 trillion of assets — is now trading near all‑time highs. The stock has climbed about 20 % since its Q3 earnings report on Oct. 20, reaching roughly $675 and drawing upward price‑target adjustments from several Wall Street firms.

Founded in 1968 as Capital International, the firm became Morgan Stanley Capital International after a partnership with Morgan Stanley in 1986. MSCI went public in 2007, and today it offers a suite of products — indices, risk models, factor models, and portfolio analytics — that are used by asset managers, hedge funds, banks, and sovereign wealth funds. Its proprietary data and models are a cornerstone for AI applications, positioning the company as a key player in the emerging AI ecosystem.

Q3 results released on Oct. 20 beat expectations. Revenue rose 12.4 % to $892 million, while adjusted earnings per share increased 14 % to $5.11. The Index segment led the charge, with revenue up 18 % and asset‑based fees climbing 25 % on the back of $76 billion of inflows into MSCI‑linked equity ETFs during the quarter. Retention remained at 95 %, and the company posted record recurring net new sales across Index, Analytics, and Private Capital Solutions.

CEO Henry Fernandez highlighted the company’s relevance in the AI era, noting that agents could bypass traditional SaaS layers and directly access MSCI data across tens, hundreds of thousands, and eventually millions of users. “We have a great franchise for the age of AI,” he said. MSCI guided full‑year free cash flow between $1.485 billion and $1.545 billion, though it did not provide a revenue forecast.

Analyst coverage has turned increasingly bullish. Price targets were raised by Wells Fargo ($720), JPMorgan ($710), Goldman Sachs ($684), and Morgan Stanley ($671). The consensus target sits near $684, only a few percent above the current share price. The company’s sticky business model and the irreplaceable nature of its data have many observers likening its stock trajectory to a SpaceX launch.

From a technical perspective, MSCI’s chart shows a sharp breakout. After languishing below $645 through the summer and early fall, the stock surged following the earnings gap, closing at $674 on Wednesday. The 50‑day moving average ($572) is about to cross above the 200‑day average ($574), and the 2021 record near $680 remains the next key level. RSI stands at 79, the highest reading in a year, up from the 30s seen at the October lows. Volume on the recent rise was well above average, confirming buyer conviction.

Traders looking for a more measured entry might watch for a retest of the $645‑$650 zone on low volume. That area represented both the old June‑July ceiling and the floor of Wednesday’s gap, offering dual confirmation as potential support. A pullback that brings RSI back toward the 50s while price holds the gap would set the stage for a cleaner breakout. Stops can be placed at $600 — the low of the late‑October consolidation — and investors may anchor to $587, the Oct. 20 gap open and first post‑gap price level. A weekly close below $587 would signal that the earnings‑driven breakout has failed.

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