Autodesk, Inc. (ADSK): Strong Business Model Meets Questionable Management

In this episode of Stock Spotlight, host Michael examines Autodesk, Inc. (ADSK), a leader in design and engineering software solutions with a legacy dating back to 1982. Michael highlights Autodesk's evolution from AutoCAD to a comprehensive suite of innovative tools under the leadership of CEO Andrew Anagnost, who took over in 2017. He discusses the company's strong market position, characterized by its successful transition to a subscription-based revenue model and strategic initiatives like generative AI integration and the development of tools like Fusion.

As of November 27th, 2024, Michael plans to watch Autodesk closely, eyeing a buy range around $200. For investors without a full portfolio, Michael suggests the $225-$240 range as an attractive entry point. Michael notes that while Autodesk meets most criteria for a Quality Growth company, investors should be aware of several ongoing challenges, including the shift to annual billing and potential leadership disruptions due to CFO turnover and activist investor pressure.

----------------------------------------------------------------

00:00 Intro

01:05 Investment Checklist & Database

02:48 Business & Industry Overview

17:03 Business Model & High-Quality Attributes

26:48 Financial Statement Overview

33:01 Management & Ownership Structure

39:04 Growth Areas & Risk Factors

42:29 KPIs to Track

43:49 Valuation & Technical Analysis

47:59 Episode Takeaways

48:47 Outro

----------------------------------------------------------------

Intro Music: Andrey Rossi – Seize the Day

Outro Music: Ra – Prospect

*Music provided by Uppbeat Premium

Follow me on X: https://twitter.com/invest091

Subscribe to my YouTube channel: https://www.youtube.com/@stockspotlightpodcast

----------------------------------------------------------------

Disclosure: The host of Stock Spotlight is not a licensed financial advisor. The information and opinions shared during the show are for entertainment purposes only.