Here's Why Synopsys Stock Crashed and Then Staged a Recovery in September

Shares in electronic design automation (EDA) and engineering simulation software company Synopsys (NASDAQ: SNPS) had a very eventful September. The stock declined by 18.2% in the month, according to data provided by S&P Global Market Intelligence. However, that figure only tells half the story, as the stock lost 35% of its value in early September following a disappointing set of third-quarter earnings. That said, the stock has recovered somewhat since then. Here are the details of what happened and what investors might expect next.The company reports out of two segments. Design automation encompasses its core EDA business and the newly acquired engineering simulation software business, Ansys. This segment combines EDA tools for designing and developing semiconductors with simulation software (Ansys) to test the results of the products and their interaction with the chips designed using EDA.The smaller design intellectual property (IP) segment provides third-party IP blocks that customers license to use in their semiconductor designs.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool