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.
How has Adobe’s stock performed during the last 20 days?
Adobe’s stock (NASDAQ: ADBE) declined by 4.7% in the last twenty-one trading days. In comparison, the broader S&P500 index declined by 2.1% over the same period. Adobe’s stock fell after its results earlier in the week as investors were left disappointed with the recurring revenue number of $11.67 billion.
What other software companies are affected by ADBE stock Outlook?
The ADBE stock outlook drove down other software companies, including ServiceNow ( NOW ), Snowflake ( SNOW) and Salesforce.com ( CRM ). This video file cannot be played.
What are the chances of ADBE stock rising next month?
Based on our machine learning analysis of trends in the stock price over the last ten years, there is a 74% chance of a rise in ADBE stock over the next month (twenty-one trading days). See our analysis on Adobe’s Stock Chance Of Rise for more details.
What do analysts see for Adobe's earnings for fiscal 2022?
Analysts had predicted Adobe earnings of $3.39 a share on sales of $4.33 billion. For fiscal 2022, Adobe forecast adjusted earnings of $13.70 per share on sales of $17.9 billion. Wall Street was targeting Adobe earnings of $14.26 a share on sales of $18.16 billion.
Why is Adobe stock dropping so much?
Adobe Stock Falls On Weak Guidance The market ignored the company's quarterly results and focused on Adobe's guidance for the second quarter. The company expects to report revenue of $4.36 billion and adjusted earnings of $3.30 per share, below analyst estimates.
Is Adobe stock a good buy?
Adobe is a good investment candidate for the long term, if one considers its potential for revenue growth and margin expansion in the long run.
What is wrong with Adobe stock?
The sell-off in Adobe's stock has been so significant that it is now in oversold territory, with a Relative Streng Index (RSI) of 28. RSI tracks a stock's price typically over the past 14 trading days and when there's an excess of selling, the RSI number falls, and the lower it goes.
Will Adobe stock go up?
Stock Price Forecast The 26 analysts offering 12-month price forecasts for Adobe Inc have a median target of 560.00, with a high estimate of 650.00 and a low estimate of 450.00. The median estimate represents a +30.58% increase from the last price of 428.84.
Is Adobe a buy hold or sell?
Adobe has received a consensus rating of Moderate Buy. The company's average rating score is 2.78, and is based on 21 buy ratings, 6 hold ratings, and no sell ratings.
Is Adobe overvalued?
Adobe is historically 8% overvalued, and analysts expect 17% annual returns over the next five years, 5X more than the S&P 500.
Is Adobe down right now?
All Adobe services are available.
Which share price dropped significantly?
Time PeriodCompanyCurrent PricePrev Close DateHindalco316.45589.95 21-03-2022Vedanta222.10400.05 21-03-2022Indiabulls Housing98.90157.30 21-03-2022Tata Steel838.101302.95 21-03-202216 more rows
What is the price target of Adobe?
Stock Price Target ADBEHigh$650.00Median$560.00Low$455.00Average$559.88Current Price$429.76
Does Adobe pay dividends?
Adobe does not pay a dividend.
What will Microsoft stock be worth in 5 years?
According to the algorithmic forecasts of Wallet Investor, MSFT stock could rise to $387 over the next 12 months and is a “good long-term (one-year) investment”. Although the service does not provide a Microsoft stock 10-year forecast, it predicts that MSFT could reach $676 in five years.
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.
Key Points
The creativity software specialist will deliver its fiscal fourth-quarter results on Thursday.
NASDAQ: ADBE
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What happened
Shares of creativity software leader Adobe ( ADBE 0.37% ) were down by 7.6% as of 12:30 p.m. ET Tuesday. The culprit may have been JPMorgan Chase ( JPM 2.37% ) stock analyst Sterling Auty, who downgraded the stock to neutral and put a $680 one-year price target on it.
So what
Investors should always take individual predictions about stocks' near-term price movements with a grain of salt. Adobe will report its fiscal 2021 fourth-quarter earnings after the market closes on Thursday. During its fiscal Q3, which ended Sept.
NASDAQ: ADBE
Because Adobe is a mature software firm, its profitability tends to grow at an even faster rate than its revenue does (since each incremental software sale adds little in the way of new expenses, when excluding the company's spending on expansion initiatives). For example, adjusted earnings per share rose 28% in fiscal Q3.
Now what
Since it's the end of its fiscal year, Adobe's management will also provide its initial guidance for its fiscal 2022 on its earnings call. The company will be lapping a strong 2021, but this long-term shareholder is optimistic.
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Why Is the Stock Falling?
There isn't much digging to be done here; the explanation for the decline is apparent and simple: dismal guidance for the first quarter and full-year 2022 projection.
Website Traffic Details
We utilized TipRanks' new Website Traffic tool to get a look at Adobe's online traffic data.
Bottom Line
Adobe's stock may continue to fall in the coming days, as inflation worries grow and competition heats up in the digital media market intensifies.
TipRanks
TipRanks is the most comprehensive data set of sell side analysts and hedge fund managers. TipRanks' multi-award winning platform ranks financial experts based on measured performance and the accuracy of their predictions so investors know who to trust when making investment decisions.
Financial Results: Q3, 2021
Adobe reported earnings of $2.52 per share for the quarter ended September 3, up from $1.97 per share in the comparable period of 2020. On an adjusted basis, the company earned $3.11 per share, beating the consensus forecast of $3.01 per share.
Q4 Outlook
Adobe expects to report adjusted earnings of $3.18 per share on revenue of $4.07 billion for the fourth quarter. On the other hand, analysts had projected earnings of $3.08 per share on revenue of $4.04 billion for the quarter.
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.
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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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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