Intuit shares fell about 11% in premarket trading on Wednesday after the enterprise software company on Tuesday issued a weaker-than-expected revenue outlook for fiscal 2027, warning that efforts to increase customer growth and market share will weigh on near-term sales.

The decline came despite Intuit beating Wall Street expectations for both fourth-quarter revenue and earnings.

The company forecast fiscal 2027 revenue of $23.28 billion to $23.51 billion, representing growth of 9% to 10%.

That would mark a slowdown from the 14% revenue growth recorded in fiscal 2026 and fall below analysts’ estimate of $23.72 billion, according to LSEG-compiled data.

Intuit attributed the slower outlook to weaker sales at Mailchimp, continued declines in its desktop products and lower average revenue per TurboTax customer following changes intended to attract more users.

“Looking ahead, we’re focused on scaling our Big Bets, accelerating customer growth, and making deliberate choices to create a stronger foundation for durable long-term growth,” CEO Sasan Goodarzi said.

For the fourth quarter, revenue increased 13.6% to $4.35 billion, beating the $4.27 billion expected by analysts.

Intuit expects fiscal 2027 adjusted earnings per share of $22.88 to $23.12, including a $5.81 impact from share-based compensation expense.

Analysts had been expecting $27.32.

The company also forecast first-quarter revenue of $4.29 billion to $4.31 billion, below the $4.36 billion analyst estimate.

Like many software companies, Intuit has come under pressure in recent months, with its shares falling from a record high of $812 in July last year to now trading at levels of $357.

The shares are down 43% this year.

The decline has been driven largely by investor concerns that the rise of AI-powered tools could disrupt the company’s business.

TurboTax strategy shifts toward customer growth

A key part of Intuit’s new strategy involves accepting lower revenue from individual TurboTax users in exchange for expanding its customer base.

The company said it lost “quality DIY customers to low-cost providers” during the latest tax season as consumers gained access to a growing number of cheaper alternatives.

“Price is now the number 1 reason customers leave TurboTax,” Goodarzi said on the company’s earnings call on Tuesday.

Historically, Intuit focused its TurboTax strategy on maximizing tax revenue and average revenue per customer by moving users toward higher-value products.

The company is now changing that approach, prioritizing customer acquisition and retention.

“This means we are deliberately accepting lower initial DIY tax ARPC to acquire and retain more quality customers, grow e-file share and create greater lifetime value,” Goodarzi said.

Chief Financial Officer Sandeep Aujla said the fiscal 2027 outlook reflects “deliberate actions” to improve the price-value equation for DIY customers, resulting in lower tax ARPC.

Intuit expects TurboTax revenue to grow only 2% to 3% in fiscal 2027, compared with 7% growth in fiscal 2026.

QuickBooks also moves toward lower prices

The company is applying a similar strategy to QuickBooks, where it is introducing free and lower-cost products to bring more small businesses into its ecosystem.

Intuit said QuickBooks Free and QuickBooks Lite are designed to widen the customer funnel, with the company expecting to monetize users through payments adoption and eventual upgrades to paid products.

QuickBooks Free had more than 20,000 customers either actively using the product or converting to paid offerings as of last month, according to Intuit.

The approach represents a broader shift from maximizing revenue from existing customers toward building a larger base that could generate greater lifetime value over time.

However, investors are being asked to accept slower near-term growth while Intuit tests whether the strategy can translate into stronger customer acquisition and retention.

Analysts split over Intuit’s prospects

Jefferies maintained a Buy rating and $500 price target, arguing that the conservative outlook creates a relatively low bar for Intuit to clear.

The firm noted that fiscal 2027 revenue growth of 9% to 10% would represent a decline of more than 400 basis points from fiscal 2026 and mark the first time since fiscal 2015 that Intuit’s growth could fall below 10%.

Jefferies also pointed to the weakness in TurboTax guidance.

Its 2% to 3% growth forecast is below H&R Block’s 4.8% outlook, while TurboTax revenue has not grown below roughly 7% over the past 11 fiscal years.

Morgan Stanley took a more cautious stance, cutting its price target to $315 from $335 while retaining an Equalweight rating.

The firm said execution risk remains high until the company demonstrates that its pricing reset can successfully drive customer growth.

Morgan Stanley nevertheless noted that Intuit appears inexpensive at roughly 14 times calendar 2027 earnings.

Mizuho retained its Outperform rating and $430 price target.

AI remains a key part of the investment case

Intuit’s earnings also offered evidence that artificial intelligence is supporting rather than replacing parts of its business.

“The fourth quarter “backs up Intuit’s argument that AI is expanding its ‌business ⁠rather than hollowing it out, yet the slower growth guide suggests the company itself isn’t promising the acceleration continues at the same pace,” said Gadjo Sevilla, analyst at Emarketer.

Intuit shares are now down about 43% this year, leaving investors to weigh the company’s lower valuation against the uncertainty surrounding its growth strategy.

The central question is whether accepting lower revenue per customer today can generate enough additional users, market share and lifetime value to restore growth over the longer term.

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XRP slipped below $1.50 on Wednesday as traders took profits after a rapid cryptocurrency rally.

The token traded around $1.44-$1.48 after surging from roughly $1 to as high as $1.70 in less than a week, a gain of about 70% at the peak.

The reversal raised questions over whether the rally moved too quickly or exposed weaker spot demand.

$1.70 brought sellers back after a furious rally

XRP’s advance carried it into the $1.50-$1.70 region, an area TradingKey identified as a zone of previous peaks and concentrated trading volume.

That matters because investors trapped during earlier rallies were given another opportunity to exit, while short-term traders were sitting on large gains.

Bitcoin’s retreat after moving above $80,000 and elevated Bitcoin dominance also drained liquidity from altcoins.

FX Leaders analyst Arslan Ali Butt said consolidation after a roughly 72% advance was normal.

He identified $1.4287 as immediate support and $1.5328 as the level XRP needs to clear for “stronger momentum” towards another test of $1.70.

The setup is therefore less complicated than Wednesday’s drop might suggest.

XRP did not encounter a sudden deterioration in its fundamental story near $1.70. It reached a heavily traded resistance area after compressing months of potential gains into a few days, giving investors a strong incentive to take money off the table.

Leverage turned from fuel into a problem

The larger concern for bulls is how much of the rally was being amplified by derivatives.

CryptoQuant data cited by CCN showed Binance’s estimated XRP leverage ratio at its highest level in more than seven months.

CryptoQuant contributor Arab Chain said rising leverage alongside higher prices and open interest “could reflect increased confidence” and potentially support further gains.

That dynamic worked while XRP was climbing. Once the token stalled, the same leverage increased downside pressure.

CCN reported XRP futures open interest near $3.45 billion, with roughly two Binance accounts positioned long for every one short. Among top traders, the imbalance was closer to three-to-one.

About $18.9 million of XRP positions were liquidated over 24 hours, including roughly $15 million in longs. Futures generated about $6.4 billion in trading volume, versus around $1.2 billion in spot volume.

That imbalance helps explain the reversal.

ETF buying keeps the broader bull case alive

The correction is occurring despite evidence that regulated demand remains constructive.

FX Leaders reported that US-listed XRP products have recorded positive inflows for six consecutive weeks, including roughly $40 million in the latest week.

That matters because spot-based investment demand is generally more durable than leveraged futures positioning, while activity across crypto exchanges can be more sensitive to short-term shifts in sentiment and leverage.

Sustained ETF inflows could therefore help absorb some of the profit-taking pressure.

But bulls still need to regain control of key levels.

Butt sees $1.4287 as immediate support. Holding it keeps the short-term structure constructive, while a move above $1.5328 could reopen the path towards $1.70. A break lower could expose the $1.34-$1.35 region.

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Micron stock has slumped sharply in the past few months, falling from the year-to-date high of $1,257 in June to the current $932. This retreat has happened despite its strong performance as the AI boom gains steam. This article explores what to expect as Nvidia publishes its financial results. 

Nvidia earnings to have an impact on Micron

The most important catalyst for Micron shares will be Nvidia’s earnings report, which will provide more color about the state of the AI industry. These results will have an impact on other memory and semiconductor companies. 

Analysts are optimistic about the company, with Raymond James boosting its target to $352, implying a 65% surge from the current level. Other analysts from companies like Rosenblatt Securities, KeyCorp, and Cantor Fitzgerald expect it to jump to $300 and above. 

If Nvidia’s earnings come in strong, it will signal that the AI industry remains healthy, a positive read-through for memory names like Micron, SK Hynix, and SanDisk. Weak guidance, on the other hand, would point to headwinds building in the sector. Micron in particular is worth watching closely: as one of Nvidia’s top memory suppliers, its stock tends to move in direct response to Nvidia’s results.

On the positive side, there are signs that the sector is booming, with all companies releasing strong financial results and guidance. 

Micron earnings growth is accelerating

The most recent financial results showed that Micron’s business is booming. Its recent results showed that its revenue jumped by 74% in the quarter to $41.5 billion. This figure was a 346% increase from what it made in the same period last year. Its gross margins also continued growing.

Management’s guidance for the fiscal fourth quarter was among the company’s strongest yet, calling for revenue of $50 billion. Analysts, however, are expecting an even higher figure — $50.78 billion, a 348% jump year-over-year. Historically, the company has beaten its own guidance, and if that pattern holds, revenue could come in above $53 billion, pushing the annual total to $133 billion.

Its profits are also soaring. Its cloud memory’s operating margin jumped to 78% from 46% in the same period last year. The core data center margin rose to 83% from 20%, while the automotive one jumped to 75%. This margin will likely continue as HBM prices rise. Indeed, in a recent note, DigiTimes warned that HBM prices may double to $4 per gigabit by next year.

All this is happening at a time when the company is trading at bargain prices. Its forward price-to-earnings ratio has moved to 12.4, much lower than the technology sector median of 34. Also, the company has one of the best rule-of-40 multiples, which has now jumped to 327%.

Micron stock price technical analysis

MU stock chart | Source: TradingView

The daily chart shows that the MU stock price has held steady in the past few days, moving from a low of $737 in July to the current $932. A closer look shows that the stock has stabilized above the 50-day Exponential Moving Average (EMA). 

Most notably, the stock has formed an inverted head-and-shoulders pattern, a common bullish reversal sign in technical analysis. This pattern often leads to strong rebounds over time. 

Therefore, there is a possibility that the stock will bounce back, potentially to the key resistance level of $1,257, which is about 34% from the current level.

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Workday stock will be in the spotlight on Thursday as the blue-chip software company publishes its financial results, which will provide the management an opportunity to comment on the acquisition rumors. WDAY was trading at $194 on Wednesday, down modestly from the year-to-date high of $227.

Workday earnings to provide color on its growth

Workday is a top software company providing firms with solutions in the human resource, finance and accounting, legal, and planning industries. It is used by thousands of companies, including the top ones in the Fortune 500.

The company’s business has experienced strong revenue growth in the past few years, driven by the rising demand for its services from enterprise customers. Its annual revenue jumped from $5.13 billion in 2022 to over $9.5 billion last year. 

Recently, however, the stock has tumbled in the past amid concerns that AI tools will disrupt its business. These fears rose after IBM published its financial results, which showed that clients were focusing on hardware.

Workday will now have a chance to demonstrate that its business is growing when it releases its financial results on Thursday. Yahoo Finance data shows that the revenue is expected to jump by 12.2% to $2.64 billion, with earnings per share rising from $2.21 to $2.61. Workday has a long record of beating analysts estimates, meaning that the trend may continue

The most recent results showed that Workday’s revenue jumped by 13.5% in the first quarter to $2.54 billion, with its operating income rising by 13.3% to $338 million. In his statement, the CEO said:

“We are reiterating our fiscal 2027 subscription revenue outlook of $9.925 billion to $9.950 billion, while increasing our fiscal 2027 non-GAAP operating margin guidance to 30.5%. Our focus remains on executing on our agentic AI roadmap while driving operational efficiencies as we scale.”

The upcoming earnings report may give the company more insights into the recent acquisition rumor.Reuters reported that Silver Lake was considering an acquisition. If this happens, it would be one of the biggest acquisitions in the software industry since the company has a market capitalization of over $48 billion. 

Workday’s valuation is relatively friendly as it trades with a forward price-to-earnings ratio of 18. Its foreward PEG ratio is 0.85, which is lower than the technology sector median of 1.22.

Workday stock price technical analysis

WDAY stock chart | Source: TradingView

The daily chart shows that the WDAY stock bottomed at $110, its lowest level in April and June this year. It moved above the important resistance level of $158.27, its highest level on June 1 this year. 

The stock has formed a golden cross pattern, which is a common bullish reversal sign in technical analysis. Therefore, there is a likelihood that the stock will continue rising, potentially to the year-to-date high of $228. A move above that level will point to more gains, potentially to $250.

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US consumer prices rose slightly in July, with the Federal Reserve’s preferred inflation gauge showing that price pressures remain elevated as policymakers weigh the next move on interest rates.

The personal consumption expenditures price index increased 0.2% on a seasonally adjusted monthly basis, while the annual inflation rate reached 3.7%, according to the Commerce Department.

Both readings were 0.1 percentage point above the Dow Jones consensus.

The data suggest that inflation has not continued its recent moderation at the pace policymakers would like, potentially complicating the Federal Reserve’s debate over whether interest rates should remain restrictive or be raised further.

The PCE index measures prices paid by US consumers for a broad range of goods and services.

It also accounts for changes in consumer spending patterns, making it the Fed’s preferred gauge for assessing inflation.

However, the more closely watched core PCE index, which excludes volatile food and energy prices, provided a less concerning picture.

Core PCE rose 0.2% in July and 3.3% from a year earlier, matching economists’ expectations.

The core measure is generally considered a better indicator of underlying and longer-term inflation trends.

Services continue to drive prices

Goods prices actually declined 0.1% during July, helped by a 2.7% drop in gasoline and other energy-related goods.

Prices for furnishings and long-lasting household equipment fell 0.9%.

Services, however, continued to put upward pressure on inflation.

Prices for services rose 0.3%, including a 1.2% increase in financial services and insurance and a 0.3% rise in housing costs.

The report also showed that personal income increased by 0.4%, while consumer spending rose by 0.2%.

Both measures were stronger than expected, suggesting that household finances and demand remain relatively resilient despite elevated prices.

A separate government report showed that US gross domestic product grew at an annualized 1.5% pace in the second quarter, in line with expectations.

September rate hike bets fall

Financial markets have recently reduced expectations for a September rate increase.

The probability of at least a 25-basis-point hike in September has fallen to 36% from around 67% earlier this month, according to CME Group’s FedWatch Tool.

Investors still expect interest rates to be higher by the end of the year, but the latest inflation data are unlikely to provide a clear signal for the Fed’s next meeting.

The 3.7% headline PCE reading remains significantly above the central bank’s 2% inflation target.

However, the core PCE reading came in exactly as expected, making the 3.3% annual and 0.2% monthly readings the key figures for policymakers.

The recent slowdown in inflation has strengthened the case among Federal Open Market Committee members who voted to leave rates unchanged in July at 3.50% to 3.75%, where they have remained since December.

At the same time, inflation has remained above the Fed’s target since February 2021.

A growing minority of officials believe additional restraint could be required to ensure inflation returns sustainably to 2%.

The FOMC will next meet on Sept. 15-16.

Markets currently see only about a one-in-three probability of a move at that meeting, with December viewed as the more likely window for a potential rate increase.

Treasury yields remain elevated

The inflation data also come as government bond yields have climbed sharply.

Yields on 10-year and 30-year Treasury securities recently reached their highest levels since 2007.

Investors have expressed concerns about the Fed’s ability to bring inflation back to target, while growing US debt and budget deficits have also contributed to upward pressure on long-term yields.

Stock futures pulled back slightly after the inflation report, while Treasury yields moved higher.

Treasury Secretary Scott Bessent recently announced plans for the department to increase its buybacks of government debt.

However, market participants have questioned whether the initiative will have a meaningful impact on Treasury yields.

Fed officials are also gathering this week in Jackson Hole, Wyoming, for the central bank’s annual symposium.

The event will be closely watched for clues about the direction of monetary policy, with Chairman Kevin Warsh scheduled to deliver a policy speech on Friday.

Since taking office in May, Warsh has remained cautious about signaling his preferred path for interest rates, instead allowing incoming economic data and financial markets to shape expectations.

For now, the July inflation report leaves the Fed facing a difficult balance: core inflation is behaving broadly as expected, but headline inflation remains well above target, and the pace of improvement remains slow.

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