10 Unrivaled Stocks of the Next 10 Years

5) Intuit Inc. (NASDAQ:INTU)

Number of hedge fund holders: 82

Intuit Inc. (NASDAQ:INTU) is a provider of small-business accounting software, personal tax solutions, and professional tax offerings. The company has the largest market share in the Tax Preparation Software Developers industry, making up over ~70% of total industry revenue.

Intuit Inc. (NASDAQ:INTU) has now transitioned into a cloud-first company. Therefore, the company can now use its customer data to streamline the user experience throughout its products and to market its offerings. This should help Intuit Inc. (NASDAQ:INTU ) in terms of switching costs and building a network effect, which make up the company’s wide economic moat. The company enjoys market leadership and brand recognition, helping it dominate the US market for small-business accounting and DIY tax filing software.

Intuit Inc. (NASDAQ:INTU) has been launching Intuit Assist across its product lines. This is a GenAI-powered digital assistant. This will help Credit Karma users select new credit cards, QuickBooks customers to project their cash flows, and Mailchimp customers to create targeted email marketing campaigns. Also, it will help TurboTax customers understand changes in their tax returns.

Intuit Inc. (NASDAQ:INTU) continues to shift its customer base to subscription offerings. This should help in achieving revenue growth moving forward as this can create a recurring revenue stream. Apart from enhancing revenue visibility, it will also foster customer loyalty and will reduce churn rates.

Analysts at Bank of America upped their price target on shares of Intuit Inc. (NASDAQ:INTU) from $730.00 to $780.00. They gave a “Buy” rating on 23^rd August. In Q2 2024, the number of hedge funds in Insider Monkey’s database with stakes in Intuit Inc. (NASDAQ:INTU) increased to 82 as compared to 77 in the preceding quarter.

Baron Funds, an investment management company, released a second quarter 2024 investor letter. Here is what the fund said:

“GenAI has captured the market’s imagination, but it’s still very early in the user adoption of this new technology, and the financial payoff from investments into GenAI models and infrastructure is still unknown. We are focused on investing in strong businesses that will be improved by AI, even if this improvement takes time to materialize. Intuit Inc. (NASDAQ:INTU) has been rolling out Intuit Assist, a GenAI powered digital assistant, across its product lines to help Credit Karma users select new credit cards, QuickBooks customers forecast cash flow, Mailchimp customers create targeted email marketing campaigns, and TurboTax customers understand changes in their tax returns from the prior year. We consider these GenAI advancements to be evolutionary rather than revolutionary, but we continue to closely monitor the impact of new technologies on the fintech industry.”