There isn’t much digging to be done here; the explanation for the decline is apparent and simple : dismal guidance for the first quarter and full-year 2022 projection. Despite the fact that Adobe had a good fiscal fourth quarter, investors were disappointed by the company’s lackluster outlook.
Adobe’s stock fell after its results earlier in the week as investors were left disappointed with the recurring revenue number of $11.67 billion. Overall for the quarter, the company reported revenue of $3.94 billion, up 22% y-o-y while earnings were recorded at $2.54 compared to $1.99 in the same period of the previous year.
Adobe’s stock (NASDAQ: ADBE) declined by 4.7% in the last twenty-one trading days. In comparison, the broader S&P500 index declined by 2.1% over the same period. Adobe’s stock fell after its results earlier in the week as investors were left disappointed with the recurring revenue number of $11.67 billion.
Should you buy Adobe Stock during a downturn?
Better-than-expected results paired with a strong outlook should lead to a nice bump for Adobe shares. Otherwise, expect the stock to remain correlated to other tech stocks. For investors who like Adobe’s position in the creativity and productivity software markets, this downturn could present a great chance to buy some shares for the long haul.
Its chart shows clear correlation to the Invesco QQQ exchange traded fund (ETF) and the Pro, shares ultra Pro QQQ ETF. This indicates that Adobe is moving in conjunction with large-cap tech stocks, and it’s more volatile than many of its large peers.
Is adobe on pace for its second-worst drop in the past decade?
Adobe’s three worst days of the year have come in December, pushing the stock down 16% for the month and putting it on pace for its steepest monthly decline since June 2010.
Another thing we wanted the answer to was; what will Adobe’s revenue look like in Q1 2022?
Adobe said revenue in its fiscal first quarter, which goes through Feb. 2022, will be $4.23 billion, trailing analysts’ predictions for revenue of $4.34 billion, according to Refinitiv. For the full year, Adobe expects sales of $17.9 billion, which is below analysts’ average estimate for revenue of $18.16 billion.
What are the chances of ADBE stock rising next month?
Based on our machine learning analysis of trends in the stock price over the last ten years, there is a 74% chance of a rise in ADBE stock over the next month (twenty-one trading days). See our analysis on Adobe’s Stock Chance Of Rise for more details.
Can a business influence its own stock price?
Sometimes, there’s nothing a business can do to influence its stock price. Adobe lost around $30 billion in market value last month, even though nothing really changed about the company’s financial situation.