Has Intuit Stock Climbed Too Far?
The pandemic has crippled many small businesses since they've contended with government-mandated closures and reduced foot traffic as consumers try to avoid COVID. Intuit (NASDAQ: INTU) built a company in large part on serving these small- to mid-sized enterprises, offering accounting software solutions and online tax assistance at affordable prices.
Despite the government providing trillions in stimulus dollars, including specific programs to support businesses through the crisis, several surveys over the last six months suggest small business closures -- many on a permanent basis -- are still elevated. Intuit derives more than half of its revenue from this segment, yet its share price is near all-time highs. Investors should take note as the company may start to feel the effects of these headwinds.
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Source Fool.com
