Today's video focuses on Magnite (MGNI 6.65%) and Autodesk (ADSK -2.81%). These two companies have seen a correction in stock prices, which may be giving long-term investors a buying opportunity. Here are some highlights from the video:
- Magnite, a company in the ad tech market, is down over 50% from its 52-week high. In the past few months, Magnite has made numerous acquisitions to accelerate its growth. As a consequence, its balance sheet has decreased in cash and short-term investments and increased in debt. The changes in the balance sheet could have some investors worried about the future of the company and the need to raise cash.
- Autodesk's stock price is down over 15% from its 52-week high, even though this is a software leader in the 3D modeling market. The short-term bearish sentiment toward Autodesk could be the result of numerous downgrades on price targets from analysts. Regardless of short-term volatility, Autodesk has free cash flow margins of 36% over its trailing 12 months.
- Even though the media and entertainment segment is the smallest revenue driver, making $69 million out of a total revenue of $1.06 billion for its most recent quarter, this segment could be a potential growth catalyst for Autodesk. As gaming, animation, and even digital collectibles like non-fungible tokens continue to grow, the need for Autodesk's software could also increase.
Click the video below for my full thoughts and analysis.
*Stock prices used were the closing prices of Sept. 13, 2021. The video was published on Sept. 14, 2021.