In today's video, I will cover Adobe's (ADBE -12.32%) fourth-quarter results and explain why the stock is dropping. Watch the short video to learn more, consider subscribing, and click the special offer link below.
Shares of Adobe Inc ADBE tanked in early trading on Thursday, despite the company reporting upbeat fiscal fourth-quarter results.
Shares of Adobe Inc (NASDAQ:ADBE) are down 12.8% at $479.45 at last glance, after the software name's disappointing full-year and fiscal first-quarter forecasts, despite better-than-expected fiscal fourth-quarter earnings and revenue.
Shares of Adobe dropped by more than 12% on Thursday, putting the Photoshop maker's stock on pace for its worst loss in nearly nine months after lowering its revenue forecast for the current fiscal year, despite reporting record revenue and earnings that beat out Wall Street's expectations.
Adobe's management team is bullish on the AI opportunity in creative services, but Wall Street is growing impatient on the revenue runway
ADBE's fourth-quarter fiscal 2024 results reflect strong adoption of Digital Media and Digital Experience.
Adobe (ADBE) shares fell sharply in premarket trading on Thursday after the multimedia software provider issued a revenue outlook that fell short of Wall Street expectations.
U.S. stock futures were lower this morning, with the Nasdaq futures falling around 50 points on Thursday.
Shares of Adobe fell nearly 10% in premarket trading on Thursday after the Photoshop maker's downbeat full-year revenue forecast led to concerns that returns from AI investments into its software applications might take longer than expected.
Adobe's stock, priced at 27x forward free cash flow, is fairly valued but lacks compelling growth, making it a less attractive investment. Despite strong AI tool adoption, Adobe faces slowing growth and stiff competition from Canva, Microsoft, Salesforce, and others. Heavy reliance on stock buybacks for shareholder returns raises concerns about capital allocation and future performance.
Adobe Inc. (NASDAQ:ADBE ) Q4 2024 Earnings Conference Call December 11, 2024 5:00 PM ET Company Participants Steve Day - SVP, DX CFO & Corporate Finance, Interim Head of IR Shantanu Narayen - Chair & CEO David Wadhwani - President, Digital Media Business Anil Chakravarthy - President, Digital Experience Business Dan Durn - EVP & CFO Conference Call Participants Michael Turrin - Wells Fargo Alex Zukin - Wolfe Research Kirk Materne - Evercore ISI Keith Weiss - Morgan Stanley Keith Bachman - BMO Brad Sills - Bank of America Jay Vleeschhouwer - Griffin Securities Operator Good day, and welcome to the Q4 and FY ‘24 Adobe Earnings Conference Call. Today's conference is being recorded.
Adobe is expanding its artificial intelligence (AI) strategy with new premium video generation capabilities as the company builds on the success of its Firefly AI platform, which the company said has generated more than 16 billion pieces of content since launch. During its fourth-quarter earnings call on Wednesday (Dec.