Whenever the fool gets excited about something I take notice. They really hit it out of the park with Nvidia, Shopify, and The Trade Desk. They know how to cash in on the mega trend. They missed on 3d printing, but whatever.
Anyways, the recent marketing blitz on augmented reality was very interesting. It seems like there is a lot of money to be made. I didn’t purchase the service, but I did read their public article ) 3 Top Augmented Reality Stocks to Buy Right Now
Autodesk was named as one of the stocks. They make CAD software, which is used to render designs.
In the AR space, the use of Autodesk’s offerings could explode as developers adopt Autodesks AR tools to render 3d models. Autodesk fits into the type of SaaS business model that is popular here. They currently have 30% revenue growth, 89.8% gross margin, and 1.8% operating margin. They trade at a p/s of 12.65. If there is going to be an augmented reality revolution, this business seems like it is very well positioned. Growth could accelerate or hold steady for a long time.
Another fool article, 3) Stocks Poised for Huge Growth Over the Next Decade says about Autodesk, “Autodesk stock’s forward P/E of 40.8 seems high. But if we take the company’s projected earnings growth into account – 80.9% annually over the next five years – the stock is quite attractively priced.” I don’t know where this growth projection is coming from, but if it is accurate, Autodesk seems like a huge bargain. And if AR is about to take the world by storm, it may be a gross underestimation of Autodesk’s potential.
Then again, a global recession could put a damper on things…
Anyone here have an opinion on Autodesk?