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.
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