Core Insights - Intuit Inc. (INTU) has shown strong growth in revenue and free cash flow (FCF) over recent years, indicating a solid operational performance [1] - Despite this growth, the stock price has declined significantly, falling 33% year-to-date and over 45% from its all-time high, raising concerns among investors [1] Financial Performance - The company has demonstrated solid revenue growth and free cash flow generation, which are positive indicators of its financial health [1] - The substantial drop in stock price suggests a disconnect between the company's operational performance and market perception [1] Investor Sentiment - Investor concerns are primarily focused on the recent stock price decline, which may reflect broader market trends or specific issues within the company [1]

Friday at last. Friday at last! For those who aren’t paying attention to the Winter Olympics, Italy leads the medal count with 17, Norway has the most gold medals with 7, and the U.S. is in third with 14. My country, Canada, has 7 medals, none of them gold. Not to worry, our men’s hockey team will rectify that soon enough. More News from Barchart As for the markets, they were all solidly in the red yesterday -- S&P 500 down 1.6%, Nasdaq Composite down 2%, and the Dow off by 1.3% -- as tech stocks, espe ...

急剧的板块轮动打击了ServiceNow（NOW）、汤森路透（TRI）、Intuit（INTU）和Snowflake （SNOW）等软件股，但分析师认为AI将增强而非全面取代许多现有企业。 责任编辑：张俊 SF065 急剧的板块轮动打击了ServiceNow（NOW）、汤森路透（TRI）、Intuit（INTU）和Snowflake （SNOW）等软件股，但分析师认为AI将增强而非全面取代许多现有企业。 责任编辑：张俊 SF065 ...

Market Sentiment - The current market sentiment is characterized by unease and confusion among investors despite stronger economic data [1] - Investors are beginning to realize that AI advancements may lead to significant job impacts, as evidenced by major layoffs at companies like Amazon [2][3] Impact of AI on Employment - There is a growing awareness that AI will affect human capital contributions to GDP, leading to concerns about job security [2][4] - This shift is seen as part of a broader "creative destruction" process inherent in capitalism, where old methods are replaced by new technologies [4][5] Sector Rotation - The recent rotation out of software and financials is viewed as overblown, although it reflects a genuine concern about the future of these sectors [6][11] - Software companies that integrate AI components are seen as more viable investments, with examples like Intuit being highlighted for their strategic partnerships with AI firms [8][10] Investment Strategy - The company has shifted its focus towards energy investments, particularly in light of geopolitical tensions and the rise of data centers, while also maintaining a long-term view on commodities like gold and silver [12][13] - A frontier fund specializing in technologies such as AI, robotics, quantum computing, and blockchain is being promoted as a long-term investment opportunity, despite its volatility [15][16] Market Forecast - The market is expected to experience a pullback of 5-10% in the first quarter, with a potential turnaround in the latter half of the year [18][19] - The anticipated market increase is modest, projected at 5-7%, with significant volatility expected in the interim [19] Buying Opportunities - There is a belief that current software stocks are oversold, presenting buying opportunities for long-term investors [20][21] - Investors are advised to be contrarian and avoid following the crowd, as behavioral selling often leads to poor investment decisions [21] Risk Management - Investors are encouraged to assess their risk tolerance, especially in a volatile market environment, and consider more stable investments if necessary [22][23] - The transition to new technologies is expected to take time, with a stabilization period projected over the next five years [24]

Core Insights - Intuit Inc. (NASDAQ:INTU) is considered one of the most oversold stocks on NASDAQ, with recent price target adjustments from BMO Capital and TD Cowen indicating a potential for recovery despite recent underperformance [1][2] Group 1: Price Target Adjustments - BMO Capital adjusted Intuit's price target to $624 from $810 while maintaining an Outperform rating [1] - TD Cowen revised its price target to $658 from $802, keeping a Buy rating, citing expectations of a clean earnings beat against a low bar due to recent stock underperformance [1] Group 2: Partnership Development - Intuit announced a multi-year partnership with Affirm on February 2, making Affirm the exclusive pay-over-time solution integrated into QuickBooks Payments [2] - This partnership aims to enhance Intuit's financial management capabilities, allowing small and mid-market businesses to offer flexible payment options, thereby maximizing sales and improving cash flow [2] Group 3: Business Segments - Intuit operates in several segments: Small Business and Self-Employed, Consumer, Credit Karma, and ProTax, providing a range of business and financial management solutions [3]

Core Viewpoint - The market is mispricing Intuit's role as a beneficiary of AI advancements, leading to a recommendation to buy its stock [1]. Group 1: Company Analysis - Intuit is transitioning from a tool provider to a more integrated service leveraging its proprietary data [1]. - The company is positioned to capitalize on emerging trends in AI, which could enhance its growth potential [1]. Group 2: Investment Strategy - The investment strategy focuses on identifying long-term compounding opportunities and future industry leaders [1]. - The approach is influenced by studies of renowned investors, emphasizing growth and durable business models [1].

Core Insights - Lindsell Train Ltd reported an equity portfolio valued at approximately $4.1–4.2 billion, maintaining a focus on a limited number of dominant consumer, media, and financial franchises [1][10] - The portfolio is highly concentrated, with the top 10 holdings accounting for over 90% of total assets, reflecting a belief in long-term brand power and cash generation [2][10] Portfolio Overview - Total Portfolio Value: ~$4.1–4.2 billion [2] - Top 10 Holdings: - TKO Group Holdings: ~$597 million (14.6%) - Alphabet (Class A): ~$543 million (13.3%) - Walt Disney: ~$427 million (10.5%) - Intuit: ~$418 million (10.3%) - Thermo Fisher Scientific: ~$397 million (9.7%) - Fair Isaac: ~$334 million (8.2%) - Mondelez International: ~$314 million (7.7%) - PepsiCo: ~$309 million (7.6%) - PayPal: ~$301 million (7.4%) - eBay: ~$223 million (5.5%) [2] Changes in Holdings - Notable Add: Alphabet (Class A) saw an increase of ~206,000 shares (+10.1% QoQ), reinforcing its role as a core long-term investment [3] - Major Trims: - TKO Group Holdings reduced by ~219,000 shares (-6.9% QoQ) - Walt Disney trimmed by ~361,000 shares (-8.8% QoQ) - Intuit reduced by ~54,000 shares (-8.1% QoQ) - Mondelez International trimmed by ~681,000 shares (-11.9% QoQ) - PepsiCo reduced by ~226,000 shares (-9.3% QoQ) - eBay reduced by ~830,000 shares (-25.3% QoQ) [8] Investment Strategy - The portfolio reflects a quality growth style focused on brand and intellectual property-led businesses, with a very long-term holding period and low turnover [9][10] - The strategy emphasizes disciplined capital allocation and patient ownership of high-return businesses, with modest rebalancing to enhance long-term compounding [11]

You wouldn't know it from looking at market indexes like the S&P 500 and the Nasdaq Composite, which are trading near all-time highs, but the recent sell-off in software-as-a-service stocks has been absolutely brutal. This group has been getting punished as investors debate whether their shares are really worth their premium valuations in an era when AI (artificial intelligence) is proving a disruptive force. To be fair, the valuations of many software-as-a-service stocks were extremely frothy headed int ...

Core Insights - Morgan Stanley analysts suggest that five software stocks could potentially double in value within the next 12 months if fears surrounding AI subsist and the stocks rebound to their fair value [1] Group 1: Market Overview - Software stocks have faced significant declines this year, with the iShares Expanded Tech-software Sector ETF (IGV) losing over 20% of its value since the beginning of the year, primarily driven by concerns regarding AI's impact on the industry [1] - Major companies like Intuit, ServiceNow, and Salesforce have seen substantial drops in their stock prices due to fears that AI-native startups will pressure profit margins and reduce corporate headcounts, limiting revenue growth [1] Group 2: Investment Opportunities - Morgan Stanley identifies that some software stocks are currently trading at more than a 50% discount to their fair value, creating potential buying opportunities for investors [1] - The five software stocks highlighted by Morgan Stanley include large caps Intuit and Salesforce, which have potential upsides of 101% and 109% respectively from their recent closing prices [1] - Mid-cap stocks such as ServiceTitan, CCC Intelligent Solutions, and Vertex are also expected to more than double in value according to the analysts [1] Group 3: Market Sentiment and Future Outlook - The uncertainty surrounding AI's development has led to volatility in the stock market, but historical trends show that investors have often rebounded from such concerns, driving stock prices higher [1] - Experts, including Nvidia's CEO, have expressed skepticism about the notion that AI will severely disrupt the software industry, suggesting that nimble software providers could leverage AI to their advantage [1] - The market for tech stocks is expected to remain turbulent as uncertainty continues to loom over the software sector, with Morgan Stanley indicating that disruption-related volatility is likely to persist [1]

The software sector has taken a massive beating on Wall Street over the past few months on fears that AI is destined to roll over the segment. But the sell-off turned into a meltdown last week after Anthropic (ANTH.PVT) released an update to its Claude Cowork tool that included plugins to perform common tasks related to legal, marketing, finance, data, and sales. OpenAI (OPAI.PVT) then followed with its own new release, and Anthropic launched yet another. ServiceNow (NOW) stock is off more than 22% sin ...