When you think of Autodesk, you may think of 3-D printers and software for making physical objects. But some investors say that the company’s move to a cloud-based business model will give the company’s stock price a serious boost.
By mid-2016, Autodesk says it will sell its last boxed software, according to a Reuters story. After that, Autodesk customers will need to pay a monthly subscription to use any of the company’s products.
Investors believe that, while the change could lead to short-term losses, the move will ultimately pay off for Autodesk. Such a shift is much needed: in 2015 so far, Autodesk has shed nearly 25 percent of its value.
But one forecast suggests that the company’s stock could jump by as much as 50 percent within eighteen months of a move to the cloud, with earnings per share more than doubling from the company’s 2013 peak within five years.
An Autodesk spokesman stated that moving to the cloud would cut upfront costs, but declined to comment on the stock forecast. The company is scheduled to provide new targets at its investor day later today.