Microsoft's exit from this market should lead to more rational pricing and likely improved profitability for Intuit's TurboTax. In an attempt to gain market share, Microsoft dramatically cut unit price, a move Intuit was forced to match.
What consumers want is a physical presence, and typically it's just to deposit their checks. What we have found in our own research is that consumers like online banking, but they just don't like mailing checks.
This stock is up on potential takeover rumors.
In the next three years, there is going to be a gigantic transition online. It's still going to be a challenge for these companies to basically separate out an online unit. But without doing so, they are going to fall behind what other companies are doing out there.
