SaaS Stocks Hit Hard, Adobe and Intuit Present Buying Opportunities
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3 days ago
0mins
Should l Buy INTU?
Source: Fool
- Market Sell-off Impact: Despite the S&P 500 and Nasdaq Composite nearing all-time highs, SaaS stocks have faced significant declines, with Adobe and Intuit down 26% and 39% year-to-date respectively, reflecting investor concerns over their premium valuations ahead of 2026.
- Adobe's Growth Potential: Adobe reported a 10% year-over-year revenue growth in its latest earnings, with the CEO highlighting the rapid adoption of AI-driven tools as a key growth driver, and projecting a 10.2% increase in annual recurring revenue by 2026, underscoring its importance in the global AI ecosystem.
- Intuit's AI Advantage: Intuit's revenue surged 18% in the most recent quarter, driven by strong performances in Credit Karma and QuickBooks, which grew 27% and 25% respectively, with expectations of a 12% to 13% revenue increase for the full year, showcasing its momentum in AI agent services.
- Investment Risks and Opportunities: While AI poses potential competitive threats, the current sell-off presents a buying opportunity for investors, particularly given the high-risk nature of Adobe and Intuit in a rapidly evolving tech landscape, suggesting that investors should manage their positions carefully.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy INTU?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on INTU
Wall Street analysts forecast INTU stock price to rise
18 Analyst Rating
16 Buy
2 Hold
0 Sell
Strong Buy
Current: 397.960
Low
700.00
Averages
814.59
High
880.00
Current: 397.960
Low
700.00
Averages
814.59
High
880.00
About INTU
Intuit Inc. offers a financial technology platform that helps consumers and small and mid-market businesses prosper by delivering financial management, compliance, and marketing products and services. It also provides specialized tax products to accounting professionals. Its offerings include TurboTax, Credit Karma, QuickBooks, and Mailchimp. Lacerte, ProSeries, and ProConnect Tax Online. Its Global Business Solutions segment serves small and mid-market businesses around the world, and the accounting professionals who assist and advise them. Its Consumer segment serves consumers and includes do-it-yourself and assisted TurboTax income tax preparation products and services sold in the United States and Canada. Its Credit Karma segment serves consumers with a personal finance platform that provides personalized recommendations for credit card, home, auto, and personal loan, and insurance products. Its ProTax segment serves professional accountants in the United States and Canada.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Anthropic's New Tools Cause Market Turmoil
- Market Reaction: Following the launch of Anthropic's Claude Cowork and its industry-specific plugins, the market experienced panic, with stocks of Salesforce, Intuit, and Atlassian dropping by 27.9%, 33%, and 41.6% respectively, reflecting investor fears that AI tools could replace traditional SaaS platforms.
- Alphabet's Stock Decline: Alphabet's shares fell over 6% in the week after the Claude Cowork announcement, raising concerns among investors about its competitive position in AI, despite not directly offering industry-specific software, which affected market confidence.
- Competitive Pressure from Gemini 3: Google's Gemini 3 LLM update launched in November significantly enhanced its AI capabilities, attracting a surge of paid subscribers, leading investors to worry that Claude Cowork might further poach these users, increasing market uncertainty.
- Investor Buying Opportunity: Despite market volatility, renowned investors like Warren Buffett and Cathie Wood actively increased their stakes in Alphabet during the stock's decline, investing $21.6 million and $15 million respectively, indicating confidence in Alphabet's long-term value and potentially providing a buying opportunity for other investors.
See More
Alphabet Shares Decline Due to Claude Cowork Launch
- Stock Price Decline: Alphabet's shares fell over 6% following the launch of Claude Cowork, which, while not directly impacting Google's core business, raised concerns about competition with Google's Gemini 3 AI tool, leading to negative investor sentiment.
- Investor Activity: Notable investor Cathie Wood took advantage of the dip by purchasing $21.6 million in Alphabet shares through her Ark Invest funds on February 5, indicating confidence in the company's future potential despite current market challenges.
- Industry Impact: The rollout of Claude Cowork negatively affected several business software companies, with Salesforce, Intuit, and Atlassian experiencing stock declines of 27.9%, 33%, and 41.6%, respectively, reflecting market fears that AI tools could replace traditional SaaS platforms.
- Competitive Pressure: Despite Google's advancements with Gemini 3 in the AI space, investors remain concerned that Claude Cowork could lure away paid subscribers from Gemini, potentially undermining Google's competitive position in the AI market.
See More
Market Sell-Off Triggers Tech Stock Pullback
- Tech Stock Pullback: The three major U.S. stock averages declined this week due to fears surrounding rapid AI developments, with software giants like Netflix and Fox dropping 6.5% and 11.6% respectively, indicating market concerns over the profitability of streaming platforms.
- Oversold Status: According to CNBC Pro, Fox Class A shares have a 14-day RSI of nearly 18.6, while Netflix's RSI is about 24, suggesting these stocks are technically oversold and may rebound in the near term.
- DoorDash Performance: DoorDash shares, with an RSI of 16.45, fell over 12% this week; however, Bank of America reiterated its buy rating, suggesting that a strong first-quarter outlook could serve as a clearing event, reflecting confidence in its future performance.
- Overbought Real Estate Stocks: Equinix and Texas Pacific Land are considered overbought with RSI levels around 85 and 82, respectively, with Equinix rising 12.7% this week after providing strong first-quarter guidance and increasing its dividend for the 11th consecutive year, highlighting robust demand for data centers.
See More
U.S. Stocks Close Higher as Software Stocks Recover
- Market Recovery: The S&P 500 index rose by 0.05%, the Dow Jones Industrial Average by 0.10%, and the Nasdaq 100 by 0.18% on Friday, indicating a recovery after early losses, reflecting cautious optimism among investors regarding future economic prospects.
- Inflation Data Impact: The U.S. January Consumer Price Index rose by 2.4% year-over-year, below the expected 2.5%, marking the smallest increase in seven months, which may prompt the Fed to continue cutting rates, thus providing support for the stock market and alleviating concerns over rate hikes.
- Strong Software Stock Performance: Software stocks like Crowdstrike Holdings and ServiceNow rose over 4% and 3%, respectively, lifting the broader market and indicating a rebound in investor confidence in tech stocks, particularly amid rapid advancements in AI technology.
- Metal Stocks Retreat: Reports of the Trump administration's plans to narrow tariffs on steel and aluminum products led to declines in metal companies, with Century Aluminum falling over 7%, reflecting the negative impact of policy changes on the sector.
See More
Morgan Stanley Options Volume Surges Significantly
- Volume Analysis: Morgan Stanley's options trading volume reached 36,058 contracts today, equivalent to approximately 3.6 million shares, representing 40.9% of its average daily trading volume of 8.8 million shares over the past month.
- High-Frequency Options: Notably, the $160 strike put option expiring on February 20, 2026, saw a trading volume of 10,547 contracts today, representing about 1.1 million shares, indicating market interest in this price range.
- Intuit Inc Dynamics: Concurrently, Intuit Inc's options trading volume stood at 16,855 contracts, approximately 1.7 million shares, accounting for 40.5% of its average daily trading volume of 4.2 million shares over the past month.
- Market Trends: The $490 strike put option also attracted attention with a trading volume of 5,307 contracts today, representing around 530,700 shares, reflecting investors' expectations for future market volatility.
See More
"Exploring Vibe-Coding in Gas Town: A Guide to the Software Market Decline Featuring 4 Attractive Stock Selections."
Market Trends: There has been a significant selloff in software stocks, particularly affecting software-as-a-service (SaaS) companies.
Cultural References: Various playful terms have emerged to describe the situation, such as "SaaSpocalypse," highlighting the dramatic nature of the declines.
Timing of Declines: The downturn in software stocks began in January, indicating that the issues are not solely recent developments.
Naming Challenges: Attempts to create catchy phrases to describe the selloff, like "Valentine’s Day SaaSsacre" and "SaaSquatch," have faced challenges in relevance and accuracy.
See More
Anthropic's New Tools Cause Market Turmoil
- Market Reaction: Following the launch of Anthropic's Claude Cowork and its industry-specific plugins, the market experienced panic, with stocks of Salesforce, Intuit, and Atlassian dropping by 27.9%, 33%, and 41.6% respectively, reflecting investor fears that AI tools could replace traditional SaaS platforms.
- Alphabet's Stock Decline: Alphabet's shares fell over 6% in the week after the Claude Cowork announcement, raising concerns among investors about its competitive position in AI, despite not directly offering industry-specific software, which affected market confidence.
- Competitive Pressure from Gemini 3: Google's Gemini 3 LLM update launched in November significantly enhanced its AI capabilities, attracting a surge of paid subscribers, leading investors to worry that Claude Cowork might further poach these users, increasing market uncertainty.
- Investor Buying Opportunity: Despite market volatility, renowned investors like Warren Buffett and Cathie Wood actively increased their stakes in Alphabet during the stock's decline, investing $21.6 million and $15 million respectively, indicating confidence in Alphabet's long-term value and potentially providing a buying opportunity for other investors.
See More
Alphabet Shares Decline Due to Claude Cowork Launch
- Stock Price Decline: Alphabet's shares fell over 6% following the launch of Claude Cowork, which, while not directly impacting Google's core business, raised concerns about competition with Google's Gemini 3 AI tool, leading to negative investor sentiment.
- Investor Activity: Notable investor Cathie Wood took advantage of the dip by purchasing $21.6 million in Alphabet shares through her Ark Invest funds on February 5, indicating confidence in the company's future potential despite current market challenges.
- Industry Impact: The rollout of Claude Cowork negatively affected several business software companies, with Salesforce, Intuit, and Atlassian experiencing stock declines of 27.9%, 33%, and 41.6%, respectively, reflecting market fears that AI tools could replace traditional SaaS platforms.
- Competitive Pressure: Despite Google's advancements with Gemini 3 in the AI space, investors remain concerned that Claude Cowork could lure away paid subscribers from Gemini, potentially undermining Google's competitive position in the AI market.
See More
Market Sell-Off Triggers Tech Stock Pullback
- Tech Stock Pullback: The three major U.S. stock averages declined this week due to fears surrounding rapid AI developments, with software giants like Netflix and Fox dropping 6.5% and 11.6% respectively, indicating market concerns over the profitability of streaming platforms.
- Oversold Status: According to CNBC Pro, Fox Class A shares have a 14-day RSI of nearly 18.6, while Netflix's RSI is about 24, suggesting these stocks are technically oversold and may rebound in the near term.
- DoorDash Performance: DoorDash shares, with an RSI of 16.45, fell over 12% this week; however, Bank of America reiterated its buy rating, suggesting that a strong first-quarter outlook could serve as a clearing event, reflecting confidence in its future performance.
- Overbought Real Estate Stocks: Equinix and Texas Pacific Land are considered overbought with RSI levels around 85 and 82, respectively, with Equinix rising 12.7% this week after providing strong first-quarter guidance and increasing its dividend for the 11th consecutive year, highlighting robust demand for data centers.
See More
U.S. Stocks Close Higher as Software Stocks Recover
- Market Recovery: The S&P 500 index rose by 0.05%, the Dow Jones Industrial Average by 0.10%, and the Nasdaq 100 by 0.18% on Friday, indicating a recovery after early losses, reflecting cautious optimism among investors regarding future economic prospects.
- Inflation Data Impact: The U.S. January Consumer Price Index rose by 2.4% year-over-year, below the expected 2.5%, marking the smallest increase in seven months, which may prompt the Fed to continue cutting rates, thus providing support for the stock market and alleviating concerns over rate hikes.
- Strong Software Stock Performance: Software stocks like Crowdstrike Holdings and ServiceNow rose over 4% and 3%, respectively, lifting the broader market and indicating a rebound in investor confidence in tech stocks, particularly amid rapid advancements in AI technology.
- Metal Stocks Retreat: Reports of the Trump administration's plans to narrow tariffs on steel and aluminum products led to declines in metal companies, with Century Aluminum falling over 7%, reflecting the negative impact of policy changes on the sector.
See More
Morgan Stanley Options Volume Surges Significantly
- Volume Analysis: Morgan Stanley's options trading volume reached 36,058 contracts today, equivalent to approximately 3.6 million shares, representing 40.9% of its average daily trading volume of 8.8 million shares over the past month.
- High-Frequency Options: Notably, the $160 strike put option expiring on February 20, 2026, saw a trading volume of 10,547 contracts today, representing about 1.1 million shares, indicating market interest in this price range.
- Intuit Inc Dynamics: Concurrently, Intuit Inc's options trading volume stood at 16,855 contracts, approximately 1.7 million shares, accounting for 40.5% of its average daily trading volume of 4.2 million shares over the past month.
- Market Trends: The $490 strike put option also attracted attention with a trading volume of 5,307 contracts today, representing around 530,700 shares, reflecting investors' expectations for future market volatility.
See More
"Exploring Vibe-Coding in Gas Town: A Guide to the Software Market Decline Featuring 4 Attractive Stock Selections."
Market Trends: There has been a significant selloff in software stocks, particularly affecting software-as-a-service (SaaS) companies.
Cultural References: Various playful terms have emerged to describe the situation, such as "SaaSpocalypse," highlighting the dramatic nature of the declines.
Timing of Declines: The downturn in software stocks began in January, indicating that the issues are not solely recent developments.
Naming Challenges: Attempts to create catchy phrases to describe the selloff, like "Valentine’s Day SaaSsacre" and "SaaSquatch," have faced challenges in relevance and accuracy.
See More
