Why Accenture, Applovin, and Cognizant Shares Fell
The consulting business faces substantial headwinds. Artificial intelligence might render consulting work from Accenture (ACN) unnecessary. For example, companies might use AI to generate project management schedules and strategy documents. That would save them from paying consulting fees.
In its fiscal Q3 report, Accenture reported revenue of $17.7 billion, up by 7.5% Y/Y. GAAP EPS was $3.49, beating expectations. Despite increasing its free cash flow target for the year to $9 billion to $9.7 billion, ACN shares sold off.
AppLovin (APP) lost 12.02% in the last week. Although bears collectively hold a 3.43% short float against APP stock, a Culper Research short report spooked investors. The firm speculated that the firm has the backing of Chinese shareholders and their operations. AppLovin denied those claims.
APP stock has a strong chance of staging a powerful rebound. Historically, the stock would rally in double-digit percentages on any good news.
Cognizant (CTSH) traded at $80 for many weeks before falling by 4.64% on June 20. In April, the firm detailed its strategic progress in AI. It generated 1,400 active generative AI engagements. It also established a partnership with Nvidia (NVDA). The downtick in CTSH stock is unusual. However, Accenture’s drop likely hurt Cognizant’s share price. Expect value investors to add to their CTSH stock position.
