Chip design software maker Cadence forecasts annual profit below estimate, shares down

Cadence Design Systems, a company that makes software for designing chips and other things, had some bad news. Their sales predictions for the next year are lower than experts expected. This is because companies are spending less money because the economy isn't doing so well.

• Cadence's sales might be lower than expected.
• This is because businesses are cutting back on spending.
• A competitor is getting bigger, which could hurt Cadence.
• China is an important customer, and trade restrictions could cause problems.

The company's stock price went down after the news came out. It's important to remember that investing in stocks can be risky.