ADSK - Why Autodesk Stock Slipped This Week
2024-04-19 15:41:43 ET
Shares of Autodesk (NASDAQ: ADSK) slipped by as much as 10% this week, according to data from S&P Global Market Intelligence . The software giant delayed its annual report filing with the Securities and Exchange Commission (SEC) and is currently doing an internal investigation of its accounting practices. Investors do not like any uncertainty around accounting mishaps and were likely spooked by this news.
Autodesk stock is currently down 7.7% year to date while the broad market is soaring.
On April 16, Autodesk notified shareholders that it would be delaying its annual report filing, which is unusual for a company of its size. Currently, Autodesk has a market cap of $46 billion. The reason? It is still performing an internal investigation around its free-cash-flow and non-GAAP (adjusted) operating margin practices. While it is unclear whether anything will come from this investigation, investors do not like these developments. Free cash flow and profit margin are key metrics that shareholders follow. If Autodesk has been misstating these numbers, that could indicate a major problem with the business.
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Why Autodesk Stock Slipped This Week