top of page

What Caused Adobe Stock to Plunge 14% and Is It a Good Buying Opportunity Now?

Updated: Mar 20


Adobe (ADBE) - ★★★★ – Ranked 37th in Q2 Large Cap Rankings.


Adobe Inc.'s shares plunged as much as 14% on Friday after the software giant provided a disappointing sales outlook for the current quarter, reigniting concerns among investors about the potential threat posed by emerging artificial intelligence (AI) startups.


For the ongoing quarter, Adobe forecasted revenue between $5.25 billion and $5.3 billion, falling short of analysts' average estimate of $5.31 billion. The company also projected adjusted earnings per share of up to $4.40, slightly above the consensus forecast of $4.38.


Despite Adobe's efforts to integrate its proprietary AI model, Firefly, into flagship products like Photoshop and Illustrator, investors remain anxious about the competitive landscape. A recent demonstration by OpenAI of its video generation model, Sora, further fueled worries about AI-powered startups encroaching on Adobe's dominance in creative software.


Adobe has a ★★★★ star ranking in our Q2 2024 Large Cap Rankings. Subscribe for price targets, metrics, and other analysis.





Subscribe for More Insights

Don't miss out on opportunities like this one. Our subscribers receive regular updates, options ideas, and comprehensive analysis to help them navigate the options market effectively. With our plans, you'll gain access to a wealth of knowledge and strategies that can make a real difference in your trading journey.




The information provided in this report is for general informational purposes only and does not constitute investment advice or a recommendation to buy or sell any securities. The opinions expressed in the report are our own and are subject to change without notice. We may have a position in the securities mentioned in the report, and we may buy or sell such securities without notice. Any investment decisions made based on the information in this report are solely the responsibility of the recipient. We do not accept any liability for any direct, indirect, or consequential loss arising from any use of this report or its contents.

Comments


bottom of page