Key insights
- Goldman Sachs downgraded Intuit (INTU), citing emerging AI-native competitors like Prime Meridian, Perplexity Tax, and Chime Tax. The author expresses skepticism about these startups gaining significant market share from Intuit in the near term, questioning the willingness of consumers to switch for cost savings on tax returns. The article seeks opinions on the capabilities and adoption rates of these new entrants versus Intuit's established position.
Goldman has downgraded INTU and cited a few startups as the reason: Prime Meridian, Perplexity Tax and Chime Tax.
I am very skeptical that startups will steal meaningful market share from INTU in the near future; it may happen eventually, but not anytime soon. I am also skeptical of the idea that companies will take additional risk just to save some money on a tax return. Am I missing something? Does nayone have familiarity or opinions on these startups and their capabilities/adoption vs. INTU?