Intuit (INTU) stock looks broken after one of the sharpest valuation resets among premium software names. The “SaaSpocalypse” has hit the company hard, as investors increasingly question whether generative artificial intelligence (AI) could erode the moat around the company’s core tax and accounting platforms. Meanwhile, the latest Q3 report did not help much. Pressure among price-sensitive do-it-yourself (DIY) tax filers, weaker Mailchimp trends, and a large workforce reduction made the story look far messier than before.Meet Samuel – Your Personal Investing ProphetStart a conversation with TipRanks’ trusted, data-backed investment intelligence
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Still, I don’t believe the business itself is broken. Intuit raised full-year guidance, remains highly profitable, and is still expected to grow revenue and earnings at a double-digit pace. With the stock now trading at a deep discount to its historical valuation, I believe the sell-off has gone too far, making INTU a Buy.
Why Investors Trusted Intuit for So Long
Until the middle of last year, Intuit was viewed as one of the most “secure” and premium fintech platforms in the market. After all, the company’s core products — TurboTax on the consumer side and QuickBooks for SMEs — are deeply entrenched and enjoy enormous trust among users who rely on reliable financial software.
