The White House reiterated its intent to clamp down on drug companies' advertising their products. Although traditional cable firms like Comcast (CMCSA) and Fox (FOX) would face lower advertising revenue, Trade Desk (TTD) shares fell the most.
TTD stock dropped by 11.95% to close at $46.14. The risks are high that this connected television ad platform’s stock will fall further. Morgan Stanley (MS) cut its rating from “overweight” to “equal weight.”
EPAM Systems (EPAM) fell in sympathy with Synopsys (SNPS). SNPS stock lost 35.84% to close at $387.78 after posting third-quarter results. The firm earned $3.39 (non-GAAP) per share on $1.74 billion in revenue.
Synopsys dove on disappointment from Q4 and FY 2025 guidance. Baird downgraded the stock to Neutral, from Outperform. It cited material changes in Design IP prospects as a concern. China restrictions, consumer behavior, and challenges with a major foundry customer are some of the reasons for the downgrade.
On the conference call, CEO Sassine Ghazi cited several factors hurting its IP performance. China BIS saw customers questioning their multiyear commitment. Edge AI opportunities require investment decisions. It needs to put resources into delivering on those opportunities. However, Synopsys needs to add resources to the IP business to realize long-term growth. This adds uncertainty, potentially pressuring operating margins.
The company has a diversified portfolio, serving HPC, Edge AI, automotive, consumer, and mobile. This suggests that the stock is an attractive investment to accumulate at lower prices.
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