There are dozens of firms that are not included in Yahoo Finance's chart of competitors of Autodesk.Ĭonsequently, the crowded-space nature of the CAD/CAM software industry is probably one major reason why Alpha Omega Mathematica rates ADSK as a Sell. While Autodesk can keep increasing its sales, other CAD/CAM software vendors are growing faster in terms of revenue and net income growth. The CAD/CAM industry is full of hungry rivals that are slowly eating into Autodesk's profit margins. The charts below are based on Autodesk's Q3 earnings report. A market correction might eventually happen once more investors realize that Autodesk's stock price is not in line with the company's declining profitability trend. The chart below should be a loud warning that ADSK is a dangerous bet.ĪDSK's average stock price went up consistently despite the company's declining net income performance since Q1 2013. The high valuation of this software sales-dependent company is dangerous considering that AutoCAD products are no longer as dominant as they used to be. It is my strong opinion that Autodesk ( NASDAQ: ADSK) is a bad investment candidate right now.
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