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Intuit Shares Soar Amid Amazon Partnership Boost

Mover TrackerWednesday, Dec 11, 2024 5:33 pm ET

1min read

On December 11, Intuit (INTU) saw its stock rise by 3.63%, continuing an upward trajectory over the past three days with a total gain of 3.73%.

Amazon announced a significant partnership with Intuit on Monday, aimed at integrating Intuit’s online accounting tools into Amazon's vast seller network by mid-2025. Intuit's QuickBooks will soon be available on Amazon Seller Central, which is widely used by sellers to manage their Amazon business operations. Eligible sellers can also secure loans through QuickBooks Capital.

This strategic collaboration is a long-awaited development, as Amazon has faced challenges in tracking the financial health of countless third-party sellers, particularly smaller, family-run operations. Dharmesh Mehta, Amazon's VP of Worldwide Selling Partner Services, highlighted the venture's objective to provide additional financial tools and funding options to facilitate sellers' growth effectively.

The initiative will allow sellers to access real-time insights into their financial health, including profitability, cash flow, and tax estimates. Although the full integration with Intuit is scheduled for launch mid-next year, the timing of the announcement aligns with sellers' efforts to scale up for the peak holiday season, the busiest period for most retailers.

Both companies have refrained from disclosing specific terms of the agreement, including revenue sharing details. The marketplace platform remains a cornerstone of Amazon’s retail strategy, accounting for approximately 60% of product sales. Amazon's Q3 seller services revenue grew by 10%, reaching $37.9 billion and comprising 24% of its total revenue.

While Amazon's stock has surged nearly 50% this year, outperforming the Nasdaq Index's 31% growth, Intuit's share performance lags behind the broader tech sector, with a less than 4% increase in 2024. Following recent reports and earnings forecasts that fell short of analyst expectations due to postponed sales, Intuit's stock witnessed a decline of around 6% within a three-day window.

QuickBooks, a versatile tool favored by small businesses for accounting, expense management, and payroll services, remains a pivotal growth driver for Intuit. The company reported a 21% increase in its QuickBooks online accounting business in the last quarter, contributing to an overall revenue growth of 10%, reaching $3.28 billion.

Intuit is augmenting QuickBooks and other small business services with generative AI capabilities to offer users more automated insights. CEO Sasan Goodarzi emphasized an AI-driven platform to help sellers enhance revenue, profitability, and confidence in their growth journey.

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