Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, audio- and video-editing technologist Avid Technology
With that in mind, let's take a closer look at Avid's business and see what CAPS investors are saying about the stock right now.
Avid facts
| Headquarters (founded) | Burlington, Mass. (1987) |
| Market Cap | $463.0 million |
| Industry | Computer hardware |
| Trailing-12-Month Revenue | $677.9 million |
| Management | Chairman/CEO Gary Greenfield CFO Kenneth Sexton |
| Return on Equity (average, past 3 Years) | (9.6%) |
| Cash/Debt | $32.9 million / $0 |
| Competitors |
Adobe Systems Apple Sony |
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 30% of the 125 members who have rated Avid believe the stock will underperform the S&P 500 going forward.
Just last week, one of those bears, fellow Fool Anders Bylund (TMFZahrim), nicely summed up the underperform case for our community:
There's little or no sales growth ahead, and Avid has become a margin story from head to toe. And there's that Apple-made opportunity that seems to be slipping through management's fingers. Adobe, on the other hand, is accelerating.
I think investors will wake up from this euphoric jump to find that Avid's long-term prospects don't measure up. Cost-cutting is a delicate balancing act, and you can't really force customers to flock to your richer-margin products. Focusing on margin growth without destroying the underlying business is very, very hard. It's a risky turnaround plan.
What do you think about Avid, or any other stock for that matter? If you want to retire rich, you need to protect your portfolio from any undue risk. Staying away from dangerous stocks is crucial to securing your financial future, and on Motley Fool CAPS, thousands of investors are working every day to flag them. CAPS is 100% free, so get started!
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