u/springmeds ·
Reddit — r/ValueInvesting
· March 01, 2026 at 16:25
· ⬆ 16 pts
· 💬 49 comments
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AI Summary
Summary
The author is considering an investment in Intuit (INTU) following a significant price drop, framing it as a potential opportunity in the recent "saaspocalipse" (SaaS sell-off).
The author's thesis is that Intuit is a high-quality compounder with strong growth and margins, and its current valuation (P/E of 26) is attractive relative to its historical premium and growth rate.
Quality assessment: This is light speculation and a high-level investment thesis, not deep-dive due diligence. The author admits to not fully understanding the SaaS business model but relies on general principles of business moats and customer stickiness.
Score16
Comments49
Upvote %73%
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Can’t decide between it and Adobe. This whole saaspocalipse looks like a gift. Hopefully the price will go down a bit more on Monday.
I see a powerful compounder that demonstrates stable high (10-20%) growth per year and high margins. I like such stocks, but they are always valued expensively (35+ PE), and my desire for a safety margin does not allow me to buy them. Now it has fallen significantly in price, and has a PE of 26, which, although not cheap, is justified relative to their growth (1.9 PEG). If you believe that AI does not threaten their business, then this seems like a good buy. I don't really understand SaaS, but it seems to me that businesses value stability and predictability, and no one will abandon the product in favor of a little-known vibecoded clone.
Intuit, a historically high-growth (10-20% YoY) and high-margin company, has seen its price fall, bringing its P/E ratio down to 26. This lower valuation (1.9 PEG) presents a rare entry point for a "powerful compounder" that is typically too expensive for value investors seeking a margin of safety. The author believes the market is overreacting to perceived AI threats and that Intuit's entrenched position provides a durable moat, making the current price an attractive long-term investment. The primary risk cited is that AI development could genuinely disrupt Intuit's business model, invalidating the thesis that customers will stick with the established product.
The author is explicitly choosing between Intuit and Adobe, indicating they see similar qualities in both companies. Both companies are caught in the "saaspocalipse," suggesting that Adobe, like Intuit, might be a quality compounder available at a discounted price. While the author's focus shifts to Intuit, Adobe is presented as a comparable alternative, making it a stock to watch for a similar value opportunity. The risks are similar to Intuit's: overvaluation despite the price drop, and the potential for AI to disrupt its creative software moat.
This Reddit post, published March 01, 2026,
features u/springmeds
discussing INTU, ADBE.
2 trade ideas extracted by AI with direction and confidence scoring.