Accenture looks undervalued because the market seems to have decided AI kills consulting, while it could be the big winner as companies need AI implemented at scale. Q2 bookings hit a record $22.1B, AI bookings nearly doubled to $2.2B and FCF guidance rose to $10.8-11.5B. It has 85,000 dedicated AI staff, and unlike McKinsey it builds, runs and maintains AI, yet trades at 14x earnings, cheaper than Coca-Cola. This could be very wrong, but it looks interesting at these levels. x.com  x.com  x.com 

Accenture and Wolters Kluwer benefit massively from cheaper AI tokens and margin gains as they deploy AI. Their knowledge costs rank among the highest relative to COGS, but regulatory capture, reputation and sticky customers keep revenue broadly intact. Neither shows clear signs of slowing growth; Accenture guided to high-single-digit revenue growth from 2029. Despite enormous terminal-value compression, an unwinding AI-infrastructure trade could bring a sizeable rerating if fundamentals hold. … Show more

Accenture's rising acquisition spending raises concern about shareholder value as its return on invested capital falls. ROIC dropped from about 113% to 25% while debt tripled in two years to $13.4 billion, exceeding cash for the first time. Revenue grew 6% and operating margin held near 15-16%; 25% is still a very good return and net debt is close to zero. AI's potential to reshape consulting remains a worry. x.com 

Accenture looks set to rebound after shares fell 18–20% on guidance cuts tied to AI eating into consulting demand. AI bookings have since hit records, and it announced a $2B buyback plus a mid-market pivot to reignite growth. Holding above $134.70 should start filling the gap above, with targets of $155.82, $169.76 and $181.94. x.com 

Big money is rotating out of overextended chips and AI plays, leaving semiconductor stocks that went straight up as exit liquidity for retail still piling in. The money is moving into software such as Accenture, Salesforce and ServiceNow, energy names Hawaiian Electric and Southern Company, and boring dividend stocks Whirlpool, Target and UPS. It is also flowing into China: Alibaba, JD.com, PDD, Baidu and Chinese internet stocks. x.com  x.com 

Accenture's surge on claims that AI is helping the business overlooks how hard it was straining for revenue. Just a few months ago it effectively asked employees to defer vacation so they could bill more hours in Q4 and pull revenue forward. x.com 

Software is nowhere near a floor because AI has broken the assumption behind the sector's premium: very long-duration, highly recurring revenue. Competition is intensifying, new products such as Anthropic's suite far outperform incumbents like Microsoft Copilot, and AI natives move faster without legacy constraints. Accounting flatters results, with Snowflake's SBC above its CY25 free cash flow. Even at 30x GAAP earnings most names have downside, versus Alphabet at 23x and Nvidia at 14x. x.com  … Show more

IBM trades at an AI premium with no real AI growth behind it. The company forecast only 1% growth yet more than doubled from $150 to over $320 on AI hype, while its AI business is effectively non-existent. Its Q2 earnings warning came from consulting and infrastructure, not software, and the stock has fallen back to its May level around $220. x.com  x.com  x.com 

Accenture's headcount-based consulting model is being cannibalized by AI pure-plays, and it is hard to win in AI when the entire model is selling human labor. Bookings of $19.3B came in below last year's $19.7B, and the stock is making new 52-week lows. Headcount reductions look inevitable across the industry. x.com 

Okta's risk/reward is no longer attractive after doubling in three months, at 10 times FY27 sales and over 50 times earnings. Even if agentic AI products reach half of its 20,000 enterprise customers within two years with a 40% contract-value uplift, implying 13-15% annual sales growth, it is not cheap; a 50-60% uplift and 17-20% growth still isn't. Agentic AI is exponential, so the growth duration may be underestimated, but two-thirds of the position has been sold. x.com