What Happened?
Shares of engineering and design software provider PTC (NASDAQ: PTC) fell 5.4% in the morning session after a report revealed that fellow software firm Autodesk (ADSK) would no longer pursue an acquisition of the company.
According to a Bloomberg report citing people familiar with the matter, Autodesk decided to shelve its work on a potential cash-and-stock deal for PTC.
The news sent PTC's shares down while Autodesk's stock rose, suggesting investors in the latter company were relieved that it was not moving forward with what would have been one of the largest takeovers of the year. PTC's stock had previously risen on reports that Autodesk was considering a buyout. In a regulatory filing, Autodesk stated it would remain focused on its strategic priorities, which include "targeted and tuck-in acquisitions," and did not specifically mention PTC.
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What Is The Market Telling Us
PTC’s shares are not very volatile and have only had 5 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
The previous big move we wrote about was 4 days ago when the stock dropped 6.9% on the news that rival engineering software firm Autodesk (ADSK) was considering a possible acquisition of the company.
The pre-market dip followed a significant rally in PTC's shares on Wednesday, which occurred after the initial report of a potential takeover emerged. However, with neither PTC nor Autodesk confirming the acquisition talks, investor sentiment appeared to shift in early trading on Thursday.
Analysts at Morgan Stanley noted that a combined entity could offer substantial benefits, including cost synergies and a stronger position in the manufacturing software market. They also highlighted that a merger would create a more extensive dataset, which could accelerate the development of generative artificial intelligence applications for the industry.
Despite the potential long-term advantages, the lack of official confirmation from either company has introduced uncertainty, weighing on the stock.
PTC is up 3.6% since the beginning of the year, but at $189.57 per share, it is still trading 9.9% below its 52-week high of $210.47 from July 2025. Investors who bought $1,000 worth of PTC’s shares 5 years ago would now be looking at an investment worth $2,418.
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