Adobe shares suffer steepest drop in over two years on disappointing revenue guidance
Posted: Dec 12, 2024
- Adobe shares fell 14% after issuing disappointing revenue guidance for 2025
- Revenue for the fiscal first quarter projected to be between $5.63 billion and $5.68 billion, below analyst expectations of $5.73 billion
- Adobe's fourth-quarter results exceeded expectations with adjusted earnings per share of $4.81 and revenue of $5.61 billion
- Stock down 20% for the year, trailing Nasdaq which is up 33%
- Analysts at TD Cowen downgraded Adobe to hold from buy, Wells Fargo kept buy rating
- Deutsche Bank maintained buy rating but lowered target price from $650 to $600
- Adobe successfully monetizing generative AI in Creative Cloud offerings
- Analysts note that Adobe is one of the few software companies monetizing generative AI today.
- Adobe's share price fell 14% after issuing disappointing revenue guidance
- Revenue for the first quarter expected to be between $5.63 billion and $5.68 billion
- Analysts were expecting $5.73 billion
- Fourth-quarter results exceeded expectations with adjusted earnings per share of $4.81 and revenue of $5.61 billion
- Adobe is trailing the Nasdaq which is up 33% for the year
- Monetizing generative AI has been central to Adobe's growth strategy
- Deutsche Bank maintains buy rating but lowered target price from $650 to $600
What do people on Reddit think?
🚨 Reddit sentiment: negative - Most comments are either critical of Adobe's pricing and business practices, or express negative experiences with the stock performance. Summarized comments: - Several users express concerns about Adobe's pricing and business model, questioning the high share price and criticizing their software as overpriced. - Some comments reflect disappointment due to alternative software options, with mentions of artists moving to competitors like Affinity and Davinci Resolve. - There is skepticism about Adobe's ability to maintain its market strength due to AI advancements made by other companies. - A user expresses satisfaction with their stock purchase at an attractive valuation despite earlier disappointment. - There's acknowledgment of unpredictability in stock performance, with users discussing the duality of market reactions. - Sentiments lean towards being negative or cautionary with some expressing strong dissatisfaction towards Adobe's products and services. - New investors are advised to develop independent evaluation skills free from market noise. - A user who has held the stock since February shares frustration about just breaking even. Stock tickers discussed: $ADBE
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