13-06-2025
Adobe Shares Slump as Q2 Beat Fails to Deliver a Catalyst
June 13 - Shares of Adobe (NASDAQ:ADBE) slipped about 4% in Friday's premarket trading after its fiscal second-quarter results topped forecasts but failed to sway investor sentiment.
The company posted a modest beat on both revenue and earnings per share. It also raised its full-year revenue outlook, aided in part by favorable foreign exchange.
Despite the gains, analysts noted the lack of a clear near-term growth catalyst. Evercore, which kept an Outperform rating and a $475 target, said the quarter offered no real fireworks for either bulls or bears. The firm said Adobe needs to reshape its broader investment case before attracting fresh interest.
Morgan Stanley reiterated its Overweight rating with a $510 price target. Analysts said the print was largely in line, with improving AI adoption not yet showing a major impact on results.
Jefferies maintained a Buy rating and a $590 target, pointing to steady progress in AI. The firm said Firefly and Acrobat AI saw growing traction, while AI-generated content rose 20% quarter over quarter.
Still, analysts flagged that digital media recurring revenue guidance points to slower growth in the second half, which could keep shares range-bound for now.
This article first appeared on GuruFocus.
