ADBE

Adobe Systems displayed gorgeous results for the quarter ended on August 30, providing $4.65 in the profit line vs consensus estimates of $4.53 (+3.8% QoQ, +13.7% YoY) on $5.41 bln of total sales vs analyst pool numbers at $5.37 bln (+1.88% QoQ, +10.6% YoY). However, the world's most famous supplier of software features for visual and video artists, including Acrobat Reader and Premiere Pro, lost nearly 9.25% of its market caps at the very first moment after the publication in the extended trading on September 12.

Its earnings report's only "crime" was to issue next quarter's guidance for a revenue range between $5.50 and 5.55 bln, vs the Wall Street consensus of $5.6 billion. The company CEOs' projections for a quarterly profit are lying between $4.63 and $4.68 per share, compared with analyst estimates of $4.67 per share. This actually came very close to the expectations of the market community. Falling slightly short of the audience's sweet dreams, already spoiled by excellent performance of so many tech firms, Adobe stock has been immediately and undeservedly marked down from above $585 (the levels that perfectly hit my three-month old price goals) to nearly $530.

Adobe shares' temporary return to a re-test of its former solid footing in the vicinity of mid-June and early August support lines, from $500 to $530, is nothing other than a long-awaited chance for dip buyers. By offering bigger discounts, Adobe may attract even more shareholders of its business, who previously were waiting for their proper time to invest.

Some investing houses were reportedly confused by strengthening competition from Midjourney and other startups amid potential threats of narrowing demand at the expanding market of various AI-integrated tools. Yet, no one found any convincing evidence of Adobe company's troubles because of the above-stated (or some other) reasons. Tech spending for promotion of goods and services, backed by neural networks, is hitting its record high levels, with Adobe being in the forefront.

The efficiency of money flow's conversion into net income has become so clear in Adobe's case. When the central bankers' interest rates would go down step-by-step, softer monetary conditions would additionally help to reduce borrowing costs which may be important for each and any tech business. Meanwhile, Adobe announced its new generative AI-powered video creation tool, called Firefly Video Model, in a limited series for creative professionals at the beginning. A sign of breakthrough technologies are on the way to supplement the set of Adobe's smart offerings.