Please stay tuned for important disclosure information at the conclusion of this episode.

Hi, it's Susan Jubinsky, co-host of the Morning Filter podcast.

Today, we're bringing you a bonus episode from another Morning Star podcast we think you'll enjoy, investing insights.

Every Friday podcast host, Ivanaana Hampton sits down with investment experts

across Morningstar to discuss their latest research. On this episode of the show, Ivana has a

conversation with Morning Star tech sector director Eric Compton. They take a deep dive into the

recent changes Morning Stars made to the economic

moat ratings of several dozen companies in the face of AI disruption. It's a great listen,

and we hope you enjoy the episode. Welcome to Investing Insights. I'm your host, Ivanah Hampton.

The stock market has cooled on stocks caught up in the whirlwind of artificial intelligence.

Fears over whether AI will disrupt a variety of sectors have triggered big sell-offs.

Morningstar Equity analysts have investigated 132 companies to determine whether

that's the case, and they have concluded that AI is not a universal destroyer. The team thinks

investors should sort through the wreckage and find newly cheap companies with enduring competitive advantages. Eric Compton is the

director of equity research for the technology sector at Morningstar, and he's here to tell you

where to look. Welcome back to the podcast, Eric. That's great to be here. Can you briefly

explain what Maltz are and how Morningstar analysts use them to rate companies?

Sure. So a very broad question. I'll give kind of the very high level highlights. But yeah,

you know, moats are a key part of our how we analyze stocks. It affects, you know, how we pick

winners and losers. It affects how we think about valuation.

So modes fundamentally are, we think about none, narrow, and wide.

A no-mote company is something where we don't have high confidence in the excess returns over their weighted average cost of capital.

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