From CNBC: 2024-12-12 13:39:06

Adobe shares plummeted 13% after the company issued disappointing revenue guidance for the fiscal first quarter. Sales are estimated to be between $5.63 billion and $5.68 billion, missing analyst expectations of $5.73 billion. Despite this, fourth-quarter results exceeded expectations, with revenue increasing 11% to $5.61 billion.

Analysts at TD Cowen downgraded Adobe to hold from buy, while Wells Fargo maintained its buy rating. The stock is down 20% for the year, lagging behind the Nasdaq, which is up 33%. Monetizing generative artificial intelligence has been key to Adobe’s growth strategy, with Deutsche Bank analysts praising their success in this area.

Adjusted earnings per share for the fourth quarter came in at $4.81, higher than the average estimate of $4.66. Revenue exceeded expectations at $5.61 billion, beating the average estimate of $5.54 billion. Deutsche Bank maintained their buy rating but lowered the target price from $650 to $600.



Read more at CNBC:: Adobe shares plunge 13% on disappointing 2025 revenue guidance