Breaking: Adobe Inc. (ADBE) Down 10% Amidst Disappointed OutlookAdobe Inc. shares (NASDAQ: NASDAQ:ADBE ) tanked 9% in Thursday premarket trading amidst a disappointed outlook as shares faces downgrade.
Adobe (ADBE) reported record quarterly revenue above analysts’ expectations, though its outlook disappointed. The Creative Cloud developer’s revenue climbed 10% year-over-year to a record $5.71 billion, above the analyst consensus from Visible Alpha. Adjusted earnings of $2.22 billion, or $5.08 per share, rose from $2.05 billion, or $4.48 per share, a year earlier and topped estimates.
Adobe’s Digital Media arm, which includes Creative Cloud subscriptions, saw revenue of $4.23 billion, up 11% year-over-year and exceeding analysts' projections.
CEO Shantanu Narayen said Adobe is "well-positioned to capitalize on the acceleration of the creative economy driven by AI." The results come ahead of the company's Adobe Summit event next week, with analysts saying they'll be watching for updates on generative AI metrics.
Looking ahead, Adobe maintained its full-year revenue outlook of $23.3 billion to $23.55 billion, and adjusted earnings per share of $20.20 to $20.50, both below analyst consensus projections at the midpoint.
Technical Outlook
as of the time of writing, shares of Adobe Inc. (NASDAQ: NASDAQ:ADBE ) are down 10.67% trading within oversold levels with the RSI at 26. This disappointed outlook led to a gap down pattern on the chart which is a very strong bearish pattern, however, it gets filled up overtime. NASDAQ:ADBE has already broken the 1-month low base and approached the support point a break below that level could be canning for ADBE shares.
