1223 ET - LegalZoom is poised for a positive catalyst, as investors underappreciate the company's artificial-intelligence partnerships and the stock sees high short interest despite strong fundamentals, JPMorgan analysts write in a note. The company offers a business formation guide in ChatGPT, while its Connector tool allows Claude users to access attorney guidance. Crucially, the analysts write, the LegalZoom-owned law firm allows for attorneys to serve as a "human in the loop" to reduce legal liability, while the AI companies are unlikely to invest in similar capabilities. "We view the inroads LegalZoom is making with the AI majors, as well as its 'human in the loop' offerings, to set it up favorably in the short and long term," the analysts write, adding that the company's first-quarter results will likely lead to a positive catalyst. Shares gain 4%. (elias.schisgall@wsj.com)

(END) Dow Jones Newswires

April 06, 2026 12:23 ET (16:23 GMT)

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