Warning: exif_imagetype(https://payspacemagazine.com/wp-content/uploads/2024/09/adobe-shares-demonstrate-sharp-decline-1.jpg): failed to open stream: Connection refused in /home/deploy/sites/payspacemagazine.com/wp-includes/functions.php on line 3314

Warning: file_get_contents(https://payspacemagazine.com/wp-content/uploads/2024/09/adobe-shares-demonstrate-sharp-decline-1.jpg): failed to open stream: Connection refused in /home/deploy/sites/payspacemagazine.com/wp-includes/functions.php on line 3336

Warning: exif_imagetype(https://payspacemagazine.com/wp-content/uploads/2024/09/adobe-shares-demonstrate-sharp-decline-1.jpg): failed to open stream: Connection refused in /home/deploy/sites/payspacemagazine.com/wp-includes/functions.php on line 3314

Warning: file_get_contents(https://payspacemagazine.com/wp-content/uploads/2024/09/adobe-shares-demonstrate-sharp-decline-1.jpg): failed to open stream: Connection refused in /home/deploy/sites/payspacemagazine.com/wp-includes/functions.php on line 3336
News

Adobe Shares Demonstrate Sharp Decline

The value of Adobe shares fell by almost 10% on Friday, September 13, after the Photoshop developer released a disappointing quarterly earnings forecast, which provoked fears that returns from its push toward artificial intelligence design would become a scenario for a longer period of materialization compared to initial expectations.

 Adobe Shares Demonstrate Sharp Decline

The mentioned firm, which is one of the world’s largest software makers, is actively investing in image and video generation using machine intelligence. The company’s corresponding actions are largely related to its desire to maintain a leading position in the design software industry amid increased competition from well-funded startups such as Stability AI and Midjourney.

Last Thursday, September 12, Adobe released its revenue forecast for the fourth quarter. The company expects that the corresponding figure for the mentioned period will range from $5.50 billion to $5.55 billion. At the same time, analysts surveyed by LSEG predicted that Adobe’s revenue for the fourth quarter would be fixed at $5.61 billion.

If the current losses persist, the company’s market capitalization will decrease by about $25 billion. It is worth noting that this year the corresponding figure has fallen by almost 2%. At the same time, Adobe’s market capitalization grew by 77% in 2023.

Despite the disappointing revenue forecast, the company expects net new annual recurring revenue (NNARR) to exceed its expectations.

JPMorgan analysts said in a note that Adobe is a rare software developer that is growing net new bookings.

As we have reported earlier, Adobe Releases Acrobat AI Assistant.

Serhii Mikhailov

2828 Posts 0 Comments

Serhii’s track record of study and work spans six years at the Faculty of Philology and eight years in the media, during which he has developed a deep understanding of various aspects of the industry and honed his writing skills; his areas of expertise include fintech, payments, cryptocurrency, and financial services, and he is constantly keeping a close eye on the latest developments and innovations in these fields, as he believes that they will have a significant impact on the future direction of the economy as a whole.