Adobe Shares Drop After 'Disappointing Guidance': 3 Analysts Evaluate Q4 Results
Portfolio Pulse from Priya Nigam
Adobe Inc (NASDAQ:ADBE) shares fell over 14.2% following fiscal Q1 earnings, attributed to disappointing guidance on net new Digital Media ARR and skepticism about achieving full-year targets. Analysts from Stifel, JPMorgan, and Goldman Sachs provided mixed reviews, adjusting price targets and maintaining ratings. The company's focus on generative AI and product adoption are seen as key factors for future performance.
March 15, 2024 | 3:59 pm
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Adobe Inc's stock plummeted over 14.2% after Q1 earnings, with disappointing future guidance impacting investor sentiment despite positive analyst ratings.
The significant drop in Adobe's stock price is directly linked to the company's disappointing guidance for net new Digital Media ARR, which has led to skepticism about its ability to meet full-year targets. Despite some analysts maintaining positive ratings and adjusting price targets, the immediate investor reaction was negative, indicating a short-term bearish outlook.
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