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March 23, 2007
How Intuit Blew It
Shares in Intuit (INTU) have been in free fall this week as the company is losing share in the tax prep software category as more consumers shift to Web-based filing from using packaged software. Moreover, Intuit priced Tubotax as much as $10 higher than the competition causing it to lose market share to H&R Block. The company announced that desktop federal tax software was down 2% for the year, while online returns were up 4%. In our view this is the end of an error of easy money for Inuit. Before this report, we saw analysts recommend a buy on INTU just because it is tax season. We expect to see several Web 2.0 challengers to Inuit that may even be - gasp - free and ad supported.
Posted by Paul at March 23, 2007 10:18 PM
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