Shares of design software heavyweight Adobe (NASDAQ: ADBE) have dropped significantly in recent months, due largely to a 2022 revenue forecast that fell short of Street expectations.
Full Answer
What happened to Adobe Stock?
· Shares of creativity software leader Adobe ( ADBE -2.37%) were down by 7.6% as of 12:30 p.m. ET Tuesday. The culprit may have been JPMorgan Chase ( JPM -0.16%) stock analyst Sterling Auty, who ...
What are the chances of ADBE stock rising next month?
· On Wednesday, for the fourth trading session in a row, shares of software star Adobe ( ADBE -3.61%) suffered yet another slump. Down 4.3% as of 11:40 a.m. ET, Adobe stock has now fallen 7% since ...
Will Adobe's Digital Experience Revs take a hit this year?
· Why Adobe Shares Are Falling. Adobe Inc. ADBE shares are trading lower after the company issued first-quarter and fiscal year 2022 earnings per share and sales guidance below analyst estimates.
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· So what. On Dec. 16, Adobe stock fell 10.2% after the company missed the mark in its fourth-quarter earnings report. Overall, the results were solid with …
What happened
And the tech stock sell-off just goes on and on! On Wednesday, for the fourth trading session in a row, shares of software star Adobe ( ADBE -2.04% ) suffered yet another slump. Down 4.3% as of 11:40 a.m. ET, Adobe stock has now fallen 7% since the downturn began.
So what
In a note out this morning, UBS said it is cutting its rating on Adobe and downgrading the shares to neutral "on 2022 growth concerns," reports StreetInsider.com.
Now what
And now here's the really bad news: The damage to Adobe's 2022 sales will be worse "than most investors think." If UBS is right about that, of course, then it means Adobe will probably not hit analyst projections for $13.79 per share in earnings this year -- or nearly $18 billion in sales, either.
Shares of the software giant fell after weak guidance in its earnings report
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What happened
Shares of Adobe ( NASDAQ:ADBE) pulled back last month after the software giant known for products like Photoshop and its Creative Cloud offered disappointing guidance in its fourth-quarter earnings report. As a result, the stock fell 15% in December, according to data from S&P Global Market Intelligence.
So what
On Dec. 16, Adobe stock fell 10.2% after the company missed the mark in its fourth-quarter earnings report.
Now what
Adobe is one of a handful of software giants like Salesforce that have consistently delivered strong growth as a company and a stock. Adobe shares have jumped nearly 2,000% over the last decade as Adobe was an early adopter of the cloud software model. That has helped the company deliver monster profit margins, which reached 31% in 2021.
What happened
Shares of Adobe Inc. ( ADBE -0.74% ) fell today as investors continued yesterday's market sell-off. After a few months of skyrocketing share prices, many tech investors are selling their shares and locking in their profits.
So what
The S&P 500 has experienced significant gains over the past few months, led mostly by tech stocks. Investors have flocked to the technology sector as the coronavirus pandemic has forced people to spend more time at home.
Now what
The U.S. is still reeling from COVID-19 and a pandemic-induced recession. The current economic situation is likely the cause of more volatility in the markets in the coming months, even if the recent sell-off subsides soon.
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Adobe Tempers Expectations for 2022
ADBE has suffered a notble decline along with the rest of the market in the past two and a half months. Since the end of November, Adobe shares have tumbled nearly 30%, compared with the S&P 500 index, which has risen approximately 2%. Year-to-date, Adobe is down 8%, while the S&P index has slid 4%.
Is ADBE a Buy?
Despite the price target reductions, Wall Street analysts, on average, still have a Buy rating on the stock. Of the 31 analysts tracked by SA over the past 90 days, 17 rated Adobe a Strong Buy, 8 a Buy, and 6 a Hold. None rated the stock a Sell. SA authors also saw the stock as a buy, on average.
How many times has a 6% probability occurred in the last ten years?
A change of -5.3% or more over five trading days has a 6% event probability, which has occurred 141 times out of 2516 in the last ten years
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