Shares of tax and accounting software provider, Intuit (NASDAQ:INTU) fell 5.24% in the pre-market session after a report that the Biden administration is weighing a plan to launch a public tax filing portal that would compete with private tax preparers. The portal could pose a threat to Intuit's TurboTax business, which handled a third of all IRS tax returns in 2020.
What is the market telling us:
Intuit's shares are quite volatile and over the last year have had 11 moves greater than 5%. In context of that, today's move is indicating the market considers this news meaningful but not something that would fundamentally change its perception of the business.
Intuit is up 7.72% since the beginning of the year, but at $421.39 per share it is still trading 13.9% below its 52-week high of $489.23 from August 2022. Investors who bought $1,000 worth of Intuit's shares 5 years ago would now be looking at an investment worth $2,220.
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