Accenture advises the world on how to adopt AI. The market just decided AI is coming for Accenture itself.
By Vlad from Bastion on
Accenture just had the worst single day in its history, down 20%, and sits at a 9-year low. More than half its market cap is gone.
The strange part: the business didn't break. last quarter revenue rose 6% and earnings climbed 9%.
What spooked everyone was the forward look. New bookings fell 2%, the weakest in six quarters, and full-year growth guidance was cut to 3-4%.
The deeper fear is that clients will spend more on AI infrastructure than on $ 500-per-hour consultants.
The stock now trades near 9x forward earnings, the cheapest in its history.