Shares of Adobe Fall Despite Beating Earnings Expectations
Shares of software maker Adobe were falling early Friday after the company beat Wall Street’s expectations for both earnings and guidance.
Blowout Quarter for Adobe
Adobe Chief Financial Officer Dan Durn said in an interview with Barron’s that it was “a blowout quarter.” The company launched its Firefly suite of tools earlier this year, which utilize artificial intelligence, and this is starting to pay off. Additionally, Adobe managed to raise subscription prices.
D.A. Davidson analyst Gil Luria noted that Adobe is executing on all fronts, but he kept his Neutral rating on the stock with a price target of $500. Shares slipped 4% to $530.37 early Friday after closing down Thursday. Other analysts, however, remain bullish. RBC Capital Markets gives the shares an Outperform rating with a $615 price target, while Evercore ISI’s price target is $590. Mizuho analysts, led by Gregg Moskowitz, maintained their buy rating with a $630 price target after the results.
Despite the stock’s decline, analysts still have confidence in Adobe’s future growth. They believe the company is well positioned to benefit from digital transformation and its comprehensive offering. Adobe’s Firefly suite of tools, powered by artificial intelligence, is seen as a significant growth driver.
For more information, contact Brian Swint at [email protected].