Intuit Stock Plummets 60% Amid Strategic Shifts and Market Concerns Intuit (INTU) stock has dropped by approximately 60% from its 52-week high of $813, currently trading at $332 in extended trading. This steep decline reflects investor skepticism over the company’s recent performance and broader industry challenges. Despite management’s raised FY26 non-GAAP EPS guidance of $23.80 to $23.85, the stock now trades at around 14 times forward earnings—a significant discount compared to its four-year historical average of over 30x. The market’s pessimism is driven by fears of AI disruption in core bookkeeping functions and declining performance in the DIY tax segment. However, analysts argue that the current valuation presents a compelling risk-reward opportunity, with an average price target of $567 suggesting substantial upside potential for investors willing to overlook short-term regulatory and restructuring challenges. The recent earnings report highlighted a 17% workforce reduction and CEO acknowledgment of the company’s struggles in the price-sensitive DIY tax market. While these figures initially suggest operational distress, deeper analysis reveals a strategic pivot rather than long-term decline. Intuit is deliberately ceding the low-end, commoditized DIY market to competitors, focusing instead on the higher-value assisted tax category. TurboTax Live revenue is projected to grow 36% this year, pushing the assisted segment to account for over half of TurboTax’s total revenue. This shift underscores Intuit’s efforts to transition from a volume-driven model to a premium service-oriented approach, aligning with broader industry trends toward automation and AI integration. Despite challenges in the DIY tax segment, Intuit’s broader accounting ecosystem demonstrates resilience.#ftc #intuit #turbotax #quickbooks #mailchimp
