Intuit stock price gets oversold and cheap: is it safe to buy the dip?
Intuit stock price has nosedived this year, confirming a downward spiral that started in July last year when it peaked at $810 to a low of $545 today. It has plunged by 32% from its all-time high, erasing billions of dollars in value as the market capitalization fell from $226 billion to $150 billion. So, is this crash justified as it becomes a bargain?
Intuit stock price has crashed amid AI disruption fears
Intuit is a top software company that runs four companies: TurboTax, CreditKarma, QuickBooks, and Mailchimp.
QuickBooks is the world’s biggest accounting software, while TurboTax is a major player in the tax filing industry, where it helps millions of customers a year.
Credit Karma, on the other hand, offers different services, including credit scores, credit monitoring, and insights. MailChimp offers email marketing services to thousands of companies globally, and has become its main laggard.
Intuit stock price has crashed in the past few months, mirroring the performance of other software companies like Adobe, ServiceNow, and Salesforce.
These companies have plunged as investors predict that they will be disrupted by artificial intelligence tools, especially those made by Anthropic. Intuit’s biggest single-day crash happened earlier this year when Anthropic launched Claude Opus 4.5, which brought more tools for coding, agents, and computer use.
Analysts and investors believe that these tools will replace some of the work offered by Intuit. Also, there is a likelihood that the company’s revenue and profitability growth will slow in the coming quarters.
Data compiled by MarketBeat shows that the average estimate among analysts is that the Intuit stock price is $794, down from $796, where it was three months ago.
Still, most analysts are bullish on the company, with 24 of them having a buy rating and 6 of them having a hold rating. None of the analysts tracking the company have a sell rating.
Goldman Sachs has a neutral rating of $720, while Cowen, Wolfe Research, BMO, and RBC have a buy rating with targets ranging between $730 and $820.
Intuit’s business is doing well
The most recent results showed Intuit’s business continued doing well in the last quarter, a sign that the AI boom is not disrupting it so far.
Its revenue rose by 18% in the first quarter to $3.9 billion. Most of this revenue came from its Global Business Solutions, which made $3 billion. Its consumer revenue rose to $894 million, while its earnings-per-share rose to $1.59, up by 127% YoY.
The company expects that the annual revenue this year will be between $20.9 billion and $21.18 billion, while its operating income will be between $5.7 billion and $5.8 billion.
Meanwhile, data compiled by Yahoo Finance shows that the average revenue estimate for the current financial year will be $21.2 billion, up by 12% YoY, followed by $23 billion in the next financial year.
Intuit had become bargain, with its forward price-to-earnings ratio of 23, lower than the sector median of 25 and its five-year average of 37.
Intuit share price technical analysis
The daily timeframe chart shows that the INTU stock price has crashed in the past few months, moving from a high of $810 in July last year to the current $545. It recently plunged below the key support level at $637, its lowest levels on September 25, October 9, and in November.
The stock has remained below all moving averages, while the Relative Strength Index (RSI) and the Stochastic Oscillator have all moved below the oversold levels.
Therefore, the stock will likely remain under pressure in the near term and then rebound later this year. It may drop to the key support at $500 and then rebound as investors buy the dip.
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