On Tuesday, big changes happened in the market. Shares of Intuit, a company that makes tax and accounting software, jumped by 13.6% in the morning. This happened because Intuit showed strong results for the fourth quarter of 2024. Their revenue grew by 17% compared to last year. A part of the company called Global Business Solutions—powered by QuickBooks and Mailchimp—grew by 19%, and Credit Karma’s revenue went up by 36% because more people want credit cards and personal loans.
The company’s profits grew even more. Their operating income went up by 61% under GAAP rules, and non-GAAP operating income increased by 26% thanks to better profit margins. This helped their earnings per share (EPS) rise by 26%, which beat what many analysts expected.
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At the end of the day, Intuit’s shares closed at $625.91, up 12.7% from the previous close.
“I think the strong numbers make me want to buy more, but I need to see more good news first,” one Reddit user said.
What the Market Is Telling Us
Intuit’s stock usually does not change very much. Over the past year, there have been only five times when the stock moved more than 5%. Big moves are rare for Intuit. One big move happened six months ago when the stock dropped 8.3% because the company had weak second-quarter 2024 earnings. At that time, Intuit’s gross margin fell, and its billings did not meet Wall Street’s estimates. They also gave a weak forecast for the future. For example, they lowered their growth forecast for the Consumer segment from 8-12% to 6-10%, and the Credit Karma revenue forecast was lowered from 20-25% to 10-15%. The Small Business and Self-Employed unit stayed the same at 15-20%. That quarter was very tough.
Even though Intuit is up 0.4% this year, the stock price of $625.51 is still 11.4% lower than its 52-week high of $706.25 from November 2024. One Reddit user shared,
“I have held my shares because I believe in the long term, even when prices drop a bit.”
Investors who bought $1,000 worth of Intuit shares 5 years ago would now have about $2,233. This shows that the company has done well over time.
A Look at the Future
Many experts say that generative AI will change how big companies do business. Companies like Nvidia and AMD are trading near their all-time high prices because of AI. There is also a lesser-known semiconductor stock that is doing well because of the rise of AI. If you want to learn more about this exciting story, you can check out our free report.
Disclaimer:The thoughts and recommendations given above are from individual analysts or brokerage firms, not from "Finance In It". We advise investors to consult certified experts before making any investment decisions. Investing comes with risks, and making decisions without the right information can be risky.