Adobe reported a solid quarter, beat expectations on both earnings and revenue, and raised their guidance for the year. Yet the stock keeps dropping and is now near its lowest point in a year. The AI story is not paying off as fast as people hoped. They are giving away their new tools for free to get people using them, which is great for adoption but terrible for making money right now. Meanwhile the whole software sector is getting hammered on fears that AI will eventually replace the need for products like Photoshop. On top of that, the CEO is stepping down and the CFO is leaving too, which does not exactly inspire confidence. Management approved a massive buyback to show they think the stock is cheap, but the price keeps falling anyway. Something is not adding up.
There are no replies in this thread yet. Be the first to post a reply below: