Many tech stocks had epic runs in 2023 and have sustained the momentum this year. But not Adobe (ADBE -0.89%).The software-as-a-service (SaaS) giant is down 22% year to date at the time of this writing and tumbled 13.7% on Thursday in response to its fourth-quarter fiscal 2024 results and fiscal year 2025 guidance.Here's what's driving the sustained sell-off in the growth stock and if it is worth buying in December. A primer on AdobeAdobe was a SaaS pioneer, launching its subscription service in 2012. Today ...

Have you evaluated the performance of Adobe Systems' (ADBE) international operations during the quarter that concluded in November 2024? Considering the extensive worldwide presence of this software maker, analyzing the patterns in international revenues is crucial for understanding its financial resilience and potential for growth.The global economy today is deeply interlinked, making a company's engagement with international markets a critical factor in determining its financial success and growth path. I ...

Despite posting record revenue to close out its fiscal year ended Nov. 29, shares of Adobe (ADBE -1.88%) were sinking as investors were disappointed with the company's guidance. Adobe has been at the forefront of generative artificial intelligence (AI) with both its Creative Cloud suite of products that includes Photoshop, and with its Document Cloud business featuring Acrobat. However, its monetization strategy related to AI has been a bit behind.With its latest dip, the stock is now down about 18% year to ...

Investment Strategy - Focuses on identifying growth investing opportunities with attractive risk/reward upside potential [2] - Combines sharp price action analysis with fundamentals investing [2] - Avoids overhyped and overvalued stocks while capitalizing on battered stocks with significant upside recovery possibilities [2] Investment Group - Runs the investing group Ultimate Growth Investing, specializing in high-potential opportunities across various sectors [3] - Focuses on ideas with strong growth potential and well-beaten contrarian plays, with an 18 to 24 month outlook [3] - Targets growth stocks with robust fundamentals, buying momentum, and turnaround plays at highly attractive valuations [3] Analyst Recognition - Recognized by TipRanks as a Top Analyst [1] - Recognized by Seeking Alpha as a "Top Analyst To Follow" for Technology, Software, Internet, Growth, and GARP [1] - Demonstrates outperformance with picks that generate alpha well above the S&P 500 [1]

Company Analysis - The article discusses Adobe Inc (NASDAQ: ADBE) (NEOE: ADBE:CA) and its third-quarter results, focusing on the potential of the company's Generative Credits [1] - The author, an Associate Professor in Finance and Corporate Governance at Brunel University London, holds a PhD in Finance from the University of Durham, UK, and has six years of investing experience in Indian and US equities with a medium to long-term horizon [1] - The author actively researches Behavioral Finance, Corporate Governance, Activist Hedge Funds, Cryptocurrencies, and M&A, and has published in top-ranked peer-reviewed journals [1] - The author also produces and hosts a weekly investing podcast titled The Stock Doctor [1] Disclosure - The author has a beneficial long position in Adobe Inc shares through stock ownership, options, or other derivatives [1] - The article expresses the author's own opinions and is not receiving compensation for it other than from Seeking Alpha [1] - The author has no business relationship with any company whose stock is mentioned in the article [1]

I am a full-time analyst interested in a wide range of stocks. With my unique insights and knowledge, I hope to provide other investors with a contrasting view of my portfolio, given my particular background.If you have any questions, feel free to reach out to me via a direct message on Seeking Alpha or leave a comment on one of my articles.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the ...

Adobe (NASDAQ: ADBE )(NEOE: ADBE:CA ) was punished after reporting a mixed 4Q FY2024 earnings result, with the stock dropping nearly 13% the next trading day. While I understand the frustration around the weak revenue outlook, I think the market's reactionI'm specialized in fundamental equity research, global macro strategy, and top-down portfolio construction. I graduated from UCLA with a degree of Business Economics and UMich Ross School of Business with a Master of Accounting. I'm a senior analyst at a m ...

Investment Rating - The report maintains a "BUY" rating for Adobe, with a target price of US$634.50, reflecting a potential upside of 15.4% from the current price of US$549.93 [2][17]. Core Insights - Adobe's total revenue for 4QFY24 grew by 11% YoY to US$5.61 billion, aligning with consensus estimates, while non-GAAP net income increased by 9% YoY to US$2.13 billion [1]. - The company is experiencing a deceleration in Digital Media net new ARR growth, which was up 2% YoY to US$578 million in 4QFY24, raising investor concerns about the monetization pace of AI applications [1]. - Adobe plans to accelerate AI monetization in FY25 by introducing higher-priced AI services, with management guiding total revenue growth of 8-10% YoY to US$23.30-23.55 billion for FY25E [1][5]. Financial Performance - For FY25E, Adobe's revenue is projected to reach US$23.5 billion, with adjusted net profit expected at US$8.86 billion, translating to an adjusted EPS of US$19.83 [1][10]. - The company reported a stable non-GAAP operating profit margin (OPM) of 46% in 4QFY24, with guidance for a similar margin in FY25E [1][4]. - Digital Experience revenue grew by 10% YoY to US$1.4 billion in 4QFY24, driven by Adobe Experience Manager and Adobe Journey Optimizer [1]. Growth and Valuation - Adobe's revenue growth is expected to slow, with projections of 9.4% for FY25E and further declines in subsequent years [14]. - The valuation of Adobe is set at US$284 billion, based on a target P/E of 32x for FY25E, which is below the sector average of 41x [5][6]. - The company has a strong cash position, with cash and equivalents expected to reach US$11.88 billion by the end of FY25E [12].

Key TakeawaysThe S&P 500 slid 0.5% on Thursday, Dec. 12, 2024, following a report showing hotter-than-expected wholesale inflation data in November.Adobe shares tumbled as lackluster sales guidance provoked uncertainty about the multimedia software maker's traction in the AI market.Shares of Warner Bros. Discovery surged after the media giant outlined plans to separate its linear TV business from its film studio and streaming operations. Major U.S. equities indexes moved lower Thursday after the Producer Pr ...

Analyst’s Disclosure: I/we have a beneficial long position in the shares of ADBE either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any i ...