Adobe Stock Plummets on Disappointing Guidance

Core Insights - Adobe Inc's shares have dropped 12.8% to $479.45 following disappointing full-year and fiscal first-quarter forecasts, despite better-than-expected fiscal fourth-quarter earnings and revenue [1] - TD Cowen downgraded Adobe's stock from "buy" to "hold" and reduced its price target from $625 to $550, with other analysts also cutting their price objectives [1] Stock Performance - The current bear gap indicates that Adobe is facing its worst single-day percentage loss since its March earnings report, although the $475 level is providing some support against further losses [2] - Adobe's stock has a year-to-date deficit of 20%, and it has broken below all daily moving averages between the key 20- and 320-day trendlines [3] Options Activity - In the options market, 83,000 calls and 67,000 puts have been exchanged, which is 10 times Adobe's average daily options volume, with the weekly 12/13 480-strike put being the most popular contract [4] - Prior to the recent event, calls were also popular, as indicated by a 50-day call/put volume ratio of 1.68, which is higher than all other readings from the past year [4]