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Should You Buy the Dip in Autodesk?

Published 12/01/2021, 12:14 PM
Updated 12/01/2021, 01:30 PM
© Reuters.  Should You Buy the Dip in Autodesk?
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Software company Autodesk (NASDAQ:ADSK) topped analysts' expectations for revenue and earnings in its last reported quarter. However, its business outlook for the next quarter fell short of expectations, prompting a significant price decline in its stock. So, given the uncertainty surrounding the company's performance in the coming months, is the current price dip in its stock an attractive buying opportunity? Let's discuss.Autodesk, Inc. (ADSK) is a software and services company that specializes in 3D design, engineering, and entertainment. The San Rafael, Calif.-based company's technology is used in architecture, engineering, building, product design, manufacturing, media, and entertainment, allowing innovators to tackle big and small challenges.

The stock has declined 18.9% in price over the past three months and 20% over the past month. Closing yesterday's trading session at $254.19, the stock is currently trading 26.2% below its 52-week high of $344.39, which it hit on August 24, 2021.

Though the company reported robust revenue and earnings in its last reported quarter, it failed to meet analysts’ expectations for its fourth quarter business outlook. This has caused the stock’s price to plummet over the past week. In addition, because the company expects rising inflationary pressure to affect its future performance, the stock could remain under pressure in the near term.

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