Investors with a lot of money to spend have taken a bearish stance on Synopsys (NASDAQ:SNPS).And retail traders should know.We noticed this today when the positions showed up on publicly available options history that we track here at Benzinga.Whether these are institutions or just wealthy individuals, we don't know. But when something this big happens with SNPS, it often means somebody knows something is about to happen.Today, Benzinga's options scanner spotted 20 options trades for Synopsys.This isn't nor ...

Core Insights - Synopsys was the best-performing stock in the S&P 500 after announcing an expanded partnership with Nvidia, with shares jumping around 5% [6][8] - Moderna's shares fell 7% due to a report about stricter vaccine approval processes by the FDA, impacting other vaccine producers as well [3][8] - Sandisk's shares dropped nearly 6% after reversing gains from its S&P 500 debut, despite overall significant gains since its spinoff from Western Digital [4][8] - Bitcoin and major cryptocurrencies saw a decline, with Coinbase Global and Robinhood Markets shares also falling [5] - Deckers Outdoor shares rose 4.5% following an upgrade from analysts, driven by positive growth outlooks for its Hoka and Ugg brands [9] - Transport and logistics companies Old Dominion Freight Line and J.B. Hunt Transport Services saw their shares increase over 3% after positive analyst ratings [10] Company-Specific Developments - Synopsys announced a $2 billion investment from Nvidia to collaborate on AI applications, boosting its stock performance [6][8] - Moderna's revenue, primarily from its COVID-19 vaccine, is under pressure due to regulatory changes, affecting its stock negatively [3][8] - Sandisk's stock performance reflects volatility post-spinoff, despite a strong demand for AI-driven memory products [4][8] - Deckers Outdoor's stock performance is supported by strong brand demand and recent analyst upgrades [9] - Old Dominion Freight Line and J.B. Hunt Transport Services received positive analyst ratings, contributing to their stock price increases [10]

Core Viewpoint - A class action lawsuit has been filed against Synopsys, Inc. for allegedly misleading investors regarding the performance of its IP business, particularly in the context of its acquisition of Ansys, Inc. for approximately $35 billion [1][2][3]. Group 1: Acquisition Details - Synopsys announced the acquisition of Ansys on January 16, 2024, with a total consideration of about $35 billion, where Ansys shareholders would receive $197.00 in cash and 0.345 shares of Synopsys common stock for each share of Ansys [2]. - The CEO of Synopsys emphasized the merger's potential to enhance technology R&D capabilities across various industries [2]. Group 2: Allegations and Financial Performance - The lawsuit alleges that Synopsys failed to disclose critical information regarding its focus on AI customers, which was negatively impacting the economics of its Design IP business [3]. - It is claimed that the company's strategic choices were unlikely to meet their intended outcomes, adversely affecting financial performance [3]. - Following the release of disappointing third-quarter results on September 9, 2025, which indicated that the IP business underperformed expectations, Synopsys's stock price dropped by $216.59, or 35.8%, closing at $387.78 per share on September 10, 2025 [4].

Group 1 - Baron Opportunity Fund reported a 5.44% return in Q3 2025, underperforming against the Russell 3000 Growth Index's 10.41% and the S&P 500 Index's 8.12% [1] - The underperformance was attributed to disappointing results from certain portfolio holdings and the strong performance of mega-cap stocks not included in the fund [1] - The letter provided a detailed update on AI and highlighted the fund's top 5 holdings for 2025 [1] Group 2 - Synopsys, Inc. (NASDAQ:SNPS) experienced a one-month return of -15.30% and a 52-week decline of 30.76%, closing at $386.30 with a market capitalization of $71.755 billion on November 19, 2025 [2] - Synopsys operates in a global duopoly with Cadence Design Systems, providing electronic design automation software for the semiconductor and systems markets [3] - The recent acquisition of ANSYS is expected to enhance Synopsys's simulation offerings, expand into adjacent markets, and realize substantial cost synergies, potentially doubling its earnings by 2030 [3]

Close-up of sign with logo at Silicon Valley headquarters of technology company Synopsys, Mountain View, California, May 3, 2019. (Photo by Smith Collection/Gado/Getty Images)Getty ImagesORCL and CRM are Synopsys’s competitors in the Application Software industry that possess:1) A lower valuation (P/OpInc) relative to Synopsys stock2) However, they demonstrate higher revenue and operating income growth.This disparity between valuation and performance suggests that purchasing ORCL and CRM stocks may be more ...

Core Viewpoint - Synopsys, Inc. is facing a class action lawsuit due to allegations of misleading investors regarding the performance of its IP business, particularly in relation to its focus on artificial intelligence customers and the resulting negative impact on financial results [2][3]. Financial Performance - For the third quarter of 2025, Synopsys reported revenue of $1.740 billion, which was below the prior guidance of $1.755 billion to $1.785 billion [4]. - The net income for the same period was $242.5 million, representing a 43% decline year-over-year from $425.9 million in the third quarter of 2024 [4]. - The Design IP segment accounted for approximately 25% of total revenue, amounting to $426.6 million, which is a 7.7% decline year-over-year [4]. - Management's guidance indicated that Design IP revenues are expected to decline by at least 5% for the full fiscal year 2025 [4]. Stock Market Reaction - Following the release of disappointing financial results, Synopsys's stock price fell by $216.59, or 35.8%, closing at $387.78 per share on September 10, 2025 [4].

Core Viewpoint - Synopsys shares have recently pulled back after a strong multi-year rally, approaching a key technical support zone, which may present an attractive entry point for investors despite short-term sentiment cooling [2][3]. Group 1: Stock Performance - SNPS stock is currently trading within a support range of $378.87 to $418.75, where it has historically bounced back, with notable rallies occurring four times in the last decade, averaging a peak return of 34.4% [3]. - The stock has experienced significant declines in the past, including over 60% during the Dot-Com Bubble and nearly 50% during the Global Financial Crisis, indicating that sharp downturns are part of its historical performance [5]. Group 2: Company Fundamentals - Synopsys specializes in electronic design automation software and intellectual property solutions for integrated circuits, supporting various applications such as USB, PCI Express, and Bluetooth low energy [4]. - The company has demonstrated revenue growth of 8.0% over the last twelve months and an average of 9.7% over the last three years, with a free cash flow margin of 20.2% and an operating margin of 17.2% [7]. Group 3: Investment Considerations - The recent pullback in Synopsys stock could be seen as a buying opportunity, especially if the fundamentals remain strong, despite the inherent risks associated with holding the stock [4]. - The Trefis High Quality Portfolio, which includes Synopsys, has consistently outperformed benchmark indices, indicating a smoother investment experience with superior returns and less risk [6].

Core Viewpoint - The Synopsys class action lawsuit alleges that the company and its executives violated the Securities Exchange Act of 1934, with claims centered around undisclosed issues affecting its financial performance and business operations [1][4]. Company Overview - Synopsys, Inc. provides electronic design automation software products used for designing and testing integrated circuits, operating in two segments: Design Automation and Design IP [3]. Allegations and Financial Impact - The lawsuit claims that Synopsys failed to disclose the negative impact of its increased focus on artificial intelligence customers on the economics of its Design IP business, leading to poor financial results [4]. - On September 9, 2025, Synopsys reported third quarter 2025 revenue of $1.740 billion, which was below its guidance of $1.755 billion to $1.785 billion, and net income of $242.5 million, marking a 43% decline from $425.9 million in the same quarter of 2024 [5]. - The Design IP segment accounted for approximately 25% of revenue, totaling $426.6 million, which represented a 7.7% year-over-year decline, with guidance indicating a potential full-year decline of at least 5% for fiscal 2025 [5].

Core Insights - Synopsys, Inc. is facing a class action lawsuit due to allegations of misleading investors regarding the performance of its IP business [1][3]. Company Performance - During the class period from December 4, 2024, to September 9, 2025, Synopsys allegedly failed to disclose critical information about its Design IP business, particularly its focus on artificial intelligence customers which negatively impacted its economics [3]. - On September 9, 2025, Synopsys reported third quarter 2025 financial results, revealing quarterly revenue of $1.740 billion, which was below the prior guidance of $1.755 billion to $1.785 billion [4]. - The net income for the third quarter 2025 was $242.5 million, representing a 43% decline year-over-year from $425.9 million in the third quarter of 2024 [4]. - The Design IP segment accounted for approximately 25% of total revenue, amounting to $426.6 million, which is a 7.7% decline year-over-year [4]. - Management's guidance indicated that Design IP revenues are expected to decline by at least 5% for the full fiscal year 2025 [4]. Stock Market Reaction - Following the release of disappointing financial results, Synopsys's stock price fell by $216.59, or 35.8%, closing at $387.78 per share on September 10, 2025 [4].

Core Viewpoint - The Synopsys class action lawsuit alleges that the company and certain executives violated the Securities Exchange Act of 1934, with claims centered around undisclosed issues affecting the company's financial performance and business segments [1][3]. Company Overview - Synopsys, Inc. provides electronic design automation software products used for designing and testing integrated circuits, operating in two segments: Design Automation and Design IP [2]. Allegations and Financial Impact - The lawsuit claims that Synopsys failed to disclose the negative impact of its increased focus on artificial intelligence customers on the economics of its Design IP business, leading to poor financial results [3]. - On September 9, 2025, Synopsys reported third quarter 2025 revenue of $1.740 billion, missing guidance of $1.755 billion to $1.785 billion, and net income of $242.5 million, a 43% decline year-over-year from $425.9 million [4]. - The Design IP segment accounted for approximately 25% of revenue, totaling $426.6 million, reflecting a 7.7% year-over-year decline, with guidance indicating at least a 5% decline in full-year revenues for fiscal 2025 [4]. - Following the financial report, Synopsys' stock price fell by nearly 36% [4].