Legal tech services provider LegalZoom.com (LZ) has been having a tough time on Wall Street. It has come under pressure, along with other software stocks, due to the rise of artificial intelligence (AI). The technology is now perceived as a hindrance to software companies, with a large-scale selloff triggered by the launch of Anthropic’s enhancements to its Claude large language model.
However, rather than opposing the rise of AI, LegalZoom has decided to incorporate it into its operations. Last month, the company announced that it’s integrating its attorney-services into the Claude ecosystem in an effort to challenge the traditional billable hour model. Against this backdrop, there might be a bull case for LegalZoom’s stock, as the Street-high price target of $11 implies a 57.8% upside. Should you buy the stock here?
