Why Adobe Stock Crashed Today
Adobe's not a sell, folks. It's a buy.
What do you do when one of the most actively followed stocks on the planet reports an earnings beat, and half the analysts who follow the stock downgrade it anyway? What do you do when that stock crashes on good news?
That's the situation facing Adobe (NASDAQ: ADBE) investors today. The PDF company was expected to report $4.97 per share in earnings last night, on less than $5.7 billion in revenue. Adobe instead reported $5.08 per share in profit, and more than $5.7 billion in revenue.
Nearly a dozen (according to The Fly) of the three dozen analysts who follow Adobe (according to S&P Global Market Intelligence) promptly lowered their price targets, driving Adobe stock down 11.1% through 9:45 a.m. ET.
