Adobe slumps after issuing lukewarm guidance
Ugly morning for Photoshop maker Adobe, which is on track for its second-worst day of 2024 after reporting its fiscal fourth-quarter earnings last night.
The numbers weren’t awful, but the company’s official guidance for next year’s revenue was a touch lighter than analysts had expected, prompting a violent tumble in the stock in the after-hours session that continues this morning.
The company’s roughly $250 billion market cap is nothing to sneeze at. But Adobe’s shortfall matters because it could be a sign that sky-high expectations for earnings — and by extension stock-market valuations — could collide with less euphoric reality once Q4 numbers start rolling in early next year. Or it could just be an individual issue with one company’s underperformance. We’ll have to wait and see.
The company’s roughly $250 billion market cap is nothing to sneeze at. But Adobe’s shortfall matters because it could be a sign that sky-high expectations for earnings — and by extension stock-market valuations — could collide with less euphoric reality once Q4 numbers start rolling in early next year. Or it could just be an individual issue with one company’s underperformance. We’ll have to wait and see.
