Adobe Inc. experienced a significant downturn, with its shares plummeting 12% in after-hours trading, following the announcement of a $25 billion share buyback and the release of a weak second-quarter revenue outlook, which led to a 10% drop after the weak outlook was disclosed. The company's stock, which had already been down 10% from its all-time highs, fell to $510 after the earnings report. This decline was attributed to soft guidance and concerns over the competition in generative AI, despite Adobe beating top and bottom line expectations. The market's reaction underscores the growing worries about Adobe's ability to compete in the rapidly evolving AI landscape.
Adobe tumbles most since 2002 as AI competition heats up https://t.co/JjLv3wiWDF via @business
Adobeโs stock slides toward worst day in 18 months, as AI story will take time https://t.co/cRtZiKqEAC
Adobe shares drop 12% on weak quarterly revenue guidance https://t.co/OlSfHMsV0S
Adobe shares drop as weak forecast fans worries about competition, AI efforts https://t.co/S6My3vT0yX https://t.co/fTTOMYTr8S
Adobe drops as weak forecast fans worries about competition, AI efforts https://t.co/UtPfWfw7RC https://t.co/sKcMxCwxxj
Adobe beat on the top and bottom lines, but the midpoint of $ADBE's revenue guide and the net new annualized recurring revenue guide for digital media were short of consensus. #Adobe CEO Shantanu Narayen joined us before the call for detail on the results. https://t.co/5vwkQssLK3
Soft guidance and concerns over generative AI threat send Adobeโs stock lower https://t.co/iHrn4qMYDu
$ADBE - another OE 10%โer Street is serving them up left and right
Adobe forecasts downbeat second-quarter revenue https://t.co/uJkHGkzDom https://t.co/YT88VI0E32
$ADBE - the pattern setup was to fall and it fell 10% AH $510 https://t.co/fmTXYCufER
$ADBE heads 10% lower to $510 post earnings, which were not bad, but the stock is very stretched. And as mentioned below the bear flag was a big red flag https://t.co/IIDm30biaP https://t.co/HVd8Lq4PyV
is ADBE the first "AI" company to have gotten slaughtered on earnings
$ADBE Just the 36th largest company by market cap casually down -12% in after hrs. After already being down 10% from athโs. Nothing to see here.
$ADBE another software miss on guide Iost count how many that is
*ADOBE EXTENDS DROP TO 10% AS 2Q REVENUE OUTLOOK MISSES ESTIMATE
$ADBE now -9% complete bloodbath $es $nq $qqq
$ADBE announcing a $25 billion share buyback after weak outlook disclosed
$ADBE reporting after the close
I imagine this comes up on $adbe call https://t.co/eBXpJVNZOv
$ADBE 2000 next week $640 calls sold to open today with 1200 of the April $660 calls bought, odd spreads into earnings ADBE spread makes a lot of sense considering 3-25 Analyst Day may be the bigger catalyst