Overview
- Goldman Sachs cut its rating on Intuit to Sell and lowered the 12‑month price target to $276 from $519, a move that triggered a sharp stock drop.
- The downgrade, which hit the market on Tuesday, focused on the threat from new AI‑driven tax offerings that could reduce TurboTax market share and average revenue per user.
- Analysts estimate an AI model could process a standard return for roughly $0.12 compared with TurboTax’s average revenue of about $162 per return, a gap that creates room for low‑cost competitors.
- Intuit announced a 17% workforce reduction of about 3,000 roles and recently cut full‑year TurboTax revenue guidance as it accelerates AI partnerships with firms such as Anthropic.
- Investors have punished the stock this year, leaving Intuit as the S&P 500’s worst performer and erasing roughly $131 billion of market value over the past year.