10 Stocks Crash Harder Than Wall Street

6. Cadence Design Systems, Inc. (NASDAQ:CDNS)

Cadence Design dropped its share prices by 10.67 percent on Wednesday to finish at $288.61 apiece as reports that it was ordered by the US government to stop selling their software to China weighed down on investor sentiment.

According to a report by the Financial Times, the Commerce Department instructed Cadence, alongside competitors Synopsis and Siemens EDA, to stop selling their designs to China. Synopsis, however, denied the report, saying it had not received any word from the government.

The Chinese market was Cadence Design Systems, Inc.’s (NASDAQ:CDNS) fourth-largest market in terms of revenue mix, accounting for 11 percent of its revenues during the first quarter of the year.

Americas remained the largest with 48 percent, followed by other Asian countries with 19 percent, and the EMEA (Europe, Middle East, and Africa) at 16 percent.

If reports are true, the directive could significantly hurt the company’s profits and margins in the future.