Software Stocks Still Have Potential: Here’s What Might Lead the Charge.
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 25 2026
0mins
Should l Buy INTU?
Source: Barron's
- Earnings Reports: Salesforce, Workday, Intuit, and other software companies are reporting their earnings this week.
- AI Challenge: These companies are facing significant challenges due to the potential obsolescence of their services caused by advancements in artificial intelligence.
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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: 455.240
Low
700.00
Averages
814.59
High
880.00
Current: 455.240
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.
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- IPO Performance Review: Circle Internet Group went public on June 5 at $31 per share, with its stock soaring to nearly $300 by June 23, but it finished the year around $80, reflecting a 73% decline from its summer peak, indicating volatility in market enthusiasm for stablecoins.
- 2023 Stock Recovery: As of March 20, Circle's stock rebounded to approximately $125, gaining nearly 60% year-to-date, which reflects ongoing investor interest in stablecoins and may lay the groundwork for future company growth.
- Stablecoin Market Potential: Circle generated $2.6 billion from reserve income last year, with USDC issuance reaching $75.3 billion in 2025, a 72% increase, indicating accelerating adoption of stablecoins and expanding Circle's yield-generating reserve base, potentially leading to a $500 billion reserve growth.
- Regulatory Environment Risks: Despite the promising outlook for the stablecoin market, the evolving regulatory landscape poses risks for Circle, particularly with the stalling of the Digital Asset Market Clarity Act, which could hinder mainstream adoption, necessitating a balance between compliance and innovation to maintain market position.
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- Surge in Stablecoin Issuance: Circle Internet Group's issuance of USDC reached $75.3 billion in 2025, marking a 72% increase, indicating a rapid growth in market demand for stablecoins, which enhances Circle's yield-generating reserve base.
- Significant Revenue Growth: Circle generated $2.6 billion from reserve income last year, with a yield of 4.1%, which not only improves the company's financial health but also provides funding for future expansion.
- Stable Market Share: As the second-largest stablecoin, USDC accounts for about a quarter of the $315 billion circulating stablecoin market, and if the total market expands to $2 trillion, Circle's reserves could increase by $500 billion, highlighting its critical position in the industry.
- Regulatory Environment Challenges: Although the Genius Act provided a framework for stablecoin issuance, the stalled progress of the Digital Asset Market Clarity Act may impact Circle's operations, particularly regarding mainstream adoption of stablecoins.
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- Filing Season Activity: The IRS has received approximately 69.7 million individual returns so far, with expectations to reach 164 million by the April 15 deadline, reflecting robust filing activity that may influence future fiscal policies.
- Impact of Rising Gas Prices: The national average gasoline price surged to $3.91 per gallon, up from $2.93 a month ago, with economists warning that this could offset some of the economic relief provided by tax refunds, particularly affecting low-income families.
- Policy Context: The Trump administration claims this will be the
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- Market Pressure Intensifies: The S&P 500 index fell by 0.37%, and the Nasdaq 100 dropped to a 3.75-month low as rising bond yields raised inflation concerns, indicating a pessimistic outlook for future economic conditions.
- Surging Energy Prices: The IEA reported that the Iran war is disrupting 7.5 million barrels per day of global oil supply, and the closure of the Strait of Hormuz has obstructed about one-fifth of the world's oil flow, potentially pushing crude prices above the 2008 record high of nearly $150 per barrel.
- Fed Policy Expectations: The market is pricing in only a 10% chance of a 25 basis point rate hike by the Fed at the April meeting, reflecting investor concerns over slowing economic growth, which could influence future monetary policy directions.
- Tech Stocks Decline: The
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Volatile Software Stocks Present Investment Opportunities, Says Apollo's David Sambur
- Market Volatility Analysis: David Sambur from Apollo Global Management stated that the selloff in software stocks due to fears of AI disruption is far from over, as the IGV Software ETF has rebounded about 3% in March but is still down 20% this year, indicating significant market uncertainty.
- Competitive Environment Challenges: Sambur highlighted that software companies are facing critical questions regarding revenue models, gross margins, competitive landscapes, and valuations, particularly with intensified competition from firms like Anthropic and OpenAI, which could lead to substantial shifts in market dynamics.
- Investment Opportunity Assessment: Despite the overshadowing AI fears, Sambur sees investment opportunities arising from share buybacks announced by companies like Intuit, Hubspot, and Salesforce, especially as reduced M&A activity may limit innovation in the sector.
- Future Uncertainty: Sambur emphasized that the industry's inability to predict software evolution over the next 1 to 5 years has led investors to recalibrate valuations and incorporate greater margins of safety, reflecting concerns over the rapid technological changes affecting the market.
See More
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- Uncertain Future for Software Stocks: David Sambur, Co-Head of Private Equity at Apollo, stated that the selloff in software stocks is far from over, as investors question the sector's revenue and gross margin models amid intensifying AI competition.
- Accelerated AI Impact: Sambur noted that the pace of displacement caused by AI is the fastest he has ever witnessed in his career, creating unprecedented competitive pressure for software companies, particularly against rivals like Anthropic and OpenAI.
- Limited Market Rebound: Although the IGV Software ETF rebounded about 3% in March, it remains down 20% for the year, and Sambur believes that this market recovery does not alter the fundamental issues facing software companies, especially regarding revenue models and gross margins.
- Buybacks and Innovation Risks: With companies like Intuit, Hubspot, and Salesforce announcing share repurchases, Sambur pointed out that these buybacks could be seen as a signal of companies waving the white flag on innovation, as they reduce available capital for future mergers and acquisitions, impacting long-term industry growth.
See More
Circle Internet Group's Stock Volatility Post-IPO
- IPO Performance Review: Circle Internet Group went public on June 5 at $31 per share, with its stock soaring to nearly $300 by June 23, but it finished the year around $80, reflecting a 73% decline from its summer peak, indicating volatility in market enthusiasm for stablecoins.
- 2023 Stock Recovery: As of March 20, Circle's stock rebounded to approximately $125, gaining nearly 60% year-to-date, which reflects ongoing investor interest in stablecoins and may lay the groundwork for future company growth.
- Stablecoin Market Potential: Circle generated $2.6 billion from reserve income last year, with USDC issuance reaching $75.3 billion in 2025, a 72% increase, indicating accelerating adoption of stablecoins and expanding Circle's yield-generating reserve base, potentially leading to a $500 billion reserve growth.
- Regulatory Environment Risks: Despite the promising outlook for the stablecoin market, the evolving regulatory landscape poses risks for Circle, particularly with the stalling of the Digital Asset Market Clarity Act, which could hinder mainstream adoption, necessitating a balance between compliance and innovation to maintain market position.
See More
Circle Internet Group Sees Significant Stablecoin Growth
- Surge in Stablecoin Issuance: Circle Internet Group's issuance of USDC reached $75.3 billion in 2025, marking a 72% increase, indicating a rapid growth in market demand for stablecoins, which enhances Circle's yield-generating reserve base.
- Significant Revenue Growth: Circle generated $2.6 billion from reserve income last year, with a yield of 4.1%, which not only improves the company's financial health but also provides funding for future expansion.
- Stable Market Share: As the second-largest stablecoin, USDC accounts for about a quarter of the $315 billion circulating stablecoin market, and if the total market expands to $2 trillion, Circle's reserves could increase by $500 billion, highlighting its critical position in the industry.
- Regulatory Environment Challenges: Although the Genius Act provided a framework for stablecoin issuance, the stalled progress of the Digital Asset Market Clarity Act may impact Circle's operations, particularly regarding mainstream adoption of stablecoins.
See More
Average Tax Refunds Rise 10.8% Amid Economic Concerns
- Increase in Refund Amounts: As of March 13, the average tax refund for individual filers reached $3,623, marking a 10.8% increase from last year's $3,271, indicating that many households are benefiting despite economic pressures.
- Filing Season Activity: The IRS has received approximately 69.7 million individual returns so far, with expectations to reach 164 million by the April 15 deadline, reflecting robust filing activity that may influence future fiscal policies.
- Impact of Rising Gas Prices: The national average gasoline price surged to $3.91 per gallon, up from $2.93 a month ago, with economists warning that this could offset some of the economic relief provided by tax refunds, particularly affecting low-income families.
- Policy Context: The Trump administration claims this will be the
See More
US Stocks Decline Amid Iran War Concerns
- Market Pressure Intensifies: The S&P 500 index fell by 0.37%, and the Nasdaq 100 dropped to a 3.75-month low as rising bond yields raised inflation concerns, indicating a pessimistic outlook for future economic conditions.
- Surging Energy Prices: The IEA reported that the Iran war is disrupting 7.5 million barrels per day of global oil supply, and the closure of the Strait of Hormuz has obstructed about one-fifth of the world's oil flow, potentially pushing crude prices above the 2008 record high of nearly $150 per barrel.
- Fed Policy Expectations: The market is pricing in only a 10% chance of a 25 basis point rate hike by the Fed at the April meeting, reflecting investor concerns over slowing economic growth, which could influence future monetary policy directions.
- Tech Stocks Decline: The
See More
Volatile Software Stocks Present Investment Opportunities, Says Apollo's David Sambur
- Market Volatility Analysis: David Sambur from Apollo Global Management stated that the selloff in software stocks due to fears of AI disruption is far from over, as the IGV Software ETF has rebounded about 3% in March but is still down 20% this year, indicating significant market uncertainty.
- Competitive Environment Challenges: Sambur highlighted that software companies are facing critical questions regarding revenue models, gross margins, competitive landscapes, and valuations, particularly with intensified competition from firms like Anthropic and OpenAI, which could lead to substantial shifts in market dynamics.
- Investment Opportunity Assessment: Despite the overshadowing AI fears, Sambur sees investment opportunities arising from share buybacks announced by companies like Intuit, Hubspot, and Salesforce, especially as reduced M&A activity may limit innovation in the sector.
- Future Uncertainty: Sambur emphasized that the industry's inability to predict software evolution over the next 1 to 5 years has led investors to recalibrate valuations and incorporate greater margins of safety, reflecting concerns over the rapid technological changes affecting the market.
See More
Software Stocks Face Grim Outlook Amid Intensifying AI Disruption
- Uncertain Future for Software Stocks: David Sambur, Co-Head of Private Equity at Apollo, stated that the selloff in software stocks is far from over, as investors question the sector's revenue and gross margin models amid intensifying AI competition.
- Accelerated AI Impact: Sambur noted that the pace of displacement caused by AI is the fastest he has ever witnessed in his career, creating unprecedented competitive pressure for software companies, particularly against rivals like Anthropic and OpenAI.
- Limited Market Rebound: Although the IGV Software ETF rebounded about 3% in March, it remains down 20% for the year, and Sambur believes that this market recovery does not alter the fundamental issues facing software companies, especially regarding revenue models and gross margins.
- Buybacks and Innovation Risks: With companies like Intuit, Hubspot, and Salesforce announcing share repurchases, Sambur pointed out that these buybacks could be seen as a signal of companies waving the white flag on innovation, as they reduce available capital for future mergers and acquisitions, impacting long-term industry growth.
See More
