{"id":7327,"date":"2024-06-15T19:10:33","date_gmt":"2024-06-15T19:10:33","guid":{"rendered":"https:\/\/demo5.dedicatedhost247.com\/zexo\/adobe-shares-surge-15-for-sharpest-rally-since-2020\/"},"modified":"2024-06-15T19:10:33","modified_gmt":"2024-06-15T19:10:33","slug":"adobe-shares-surge-15-for-sharpest-rally-since-2020","status":"publish","type":"post","link":"https:\/\/demo5.dedicatedhost247.com\/zexo\/adobe-shares-surge-15-for-sharpest-rally-since-2020\/","title":{"rendered":"Adobe shares surge 15% for sharpest rally since 2020"},"content":{"rendered":"<p> <br \/>\n<\/p>\n<div id=\"RegularArticle-ArticleBody-5\" data-module=\"ArticleBody\" data-test=\"articleBody-2\" data-analytics=\"RegularArticle-articleBody-5-2\"><span class=\"HighlightShare-hidden\" style=\"top:0;left:0\"\/><\/p>\n<div class=\"InlineImage-imageEmbed\" id=\"ArticleBody-InlineImage-107375684\" data-test=\"InlineImage\">\n<div class=\"InlineImage-wrapper\">\n<div>\n<p>Adobe CEO Shantanu Narayen speaks during an interview with CNBC on the floor at the New York Stock Exchange on Feb. 20, 2024.<\/p>\n<p>Brendan Mcdermid | Reuters<\/p>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"group\">\n<p><span class=\"QuoteInBody-quoteNameContainer\" data-test=\"QuoteInBody\" id=\"RegularArticle-QuoteInBody-1\"><a href=\"https:\/\/www.cnbc.com\/quotes\/ADBE\/\">Adobe<\/a><span class=\"QuoteInBody-inlineButton\"><span class=\"AddToWatchlistButton-watchlistContainer\" id=\"-WatchlistDropdown\" data-analytics-id=\"-WatchlistDropdown\"><button class=\"AddToWatchlistButton-watchlistButton\" aria-label=\"Add To Watchlist\" data-testid=\"dropdown-btn\"><span class=\"AddToWatchlistButton-addWatchListFromTag\"\/><\/button><\/span><\/span><\/span> shares surged 15% on Friday, the biggest gain since March 2020, after the software maker reported earnings and revenue that beat analysts&#8217; estimates.<\/p>\n<p>After the bell on Thursday, Adobe <a href=\"https:\/\/www.businesswire.com\/news\/home\/20240613805724\/en\/\" target=\"_blank\" rel=\"noopener\">reported<\/a> <a href=\"https:\/\/www.cnbc.com\/2024\/06\/13\/adobe-adbe-q2-earnings-report-2024.html\">adjusted earnings per share<\/a> of $4.48, topping the LSEG consensus estimate of $4.39 per share. Revenue increased 10% from a year earlier to $5.31 billion, exceeding analysts&#8217; estimates of $5.29 billion.<\/p>\n<p>CEO Shantanu Narayen attributed Adobe&#8217;s record revenue to its strong growth across Creative Cloud, Document Cloud and Experience Cloud and its advancements in artificial intelligence.<\/p>\n<p>&#8220;Our highly differentiated approach to AI and innovative product delivery are attracting an expanding universe of customers and providing more value to existing users,&#8221; Narayen said in a <a href=\"https:\/\/www.businesswire.com\/news\/home\/20240613805724\/en\/\" target=\"_blank\" rel=\"noopener\">press release<\/a> on Thursday.<\/p>\n<p>New annualized recurring revenue for the Digital Media business, which includes Creative Cloud subscriptions, came in at $487 million, beating the StreetAccount consensus of $437.4 million.<\/p>\n<p>Adobe&#8217;s results provide a contrast to what software investors have seen from many <a href=\"https:\/\/www.cnbc.com\/2024\/06\/01\/software-stocks-got-pummeled-this-week-on-troubling-earnings-reports.html\">industry peers<\/a> of late. <span class=\"QuoteInBody-quoteNameContainer\" data-test=\"QuoteInBody\" id=\"RegularArticle-QuoteInBody-6\"><a href=\"https:\/\/www.cnbc.com\/quotes\/CRM\/\">Salesforce<\/a><span class=\"QuoteInBody-inlineButton\"><span class=\"AddToWatchlistButton-watchlistContainer\" id=\"-WatchlistDropdown\" data-analytics-id=\"-WatchlistDropdown\"><button class=\"AddToWatchlistButton-watchlistButton\" aria-label=\"Add To Watchlist\" data-testid=\"dropdown-btn\"><span class=\"AddToWatchlistButton-addWatchListFromTag\"\/><\/button><\/span><\/span><\/span> shares suffered their worst plunge since 2004 late last month after the cloud software vendor posted weaker-than-expected revenue and issued disappointing guidance. That same week, <span class=\"QuoteInBody-quoteNameContainer\" data-test=\"QuoteInBody\" id=\"RegularArticle-QuoteInBody-7\"><a href=\"https:\/\/www.cnbc.com\/quotes\/MDB\/\">MongoDB<\/a><span class=\"QuoteInBody-inlineButton\"><span class=\"AddToWatchlistButton-watchlistContainer\" id=\"-WatchlistDropdown\" data-analytics-id=\"-WatchlistDropdown\"><button class=\"AddToWatchlistButton-watchlistButton\" aria-label=\"Add To Watchlist\" data-testid=\"dropdown-btn\"><span class=\"AddToWatchlistButton-addWatchListFromTag\"\/><\/button><\/span><\/span><\/span>, <a href=\"https:\/\/www.cnbc.com\/quotes\/S\/\">SentinelOne<\/a>,\u00a0<a href=\"https:\/\/www.cnbc.com\/quotes\/PATH\/\">UiPath<\/a>\u00a0and Veeva all pulled down their full-year revenue forecasts.<\/p>\n<p>However, there were positive signs in the sector this week. <span class=\"QuoteInBody-quoteNameContainer\" data-test=\"QuoteInBody\" id=\"RegularArticle-QuoteInBody-10\"><a href=\"https:\/\/www.cnbc.com\/quotes\/ORCL\/\">Oracle<\/a><span class=\"QuoteInBody-inlineButton\"><span class=\"AddToWatchlistButton-watchlistContainer\" id=\"-WatchlistDropdown\" data-analytics-id=\"-WatchlistDropdown\"><button class=\"AddToWatchlistButton-watchlistButton\" aria-label=\"Add To Watchlist\" data-testid=\"dropdown-btn\"><span class=\"AddToWatchlistButton-addWatchListFromTag\"\/><\/button><\/span><\/span><\/span> shares rallied after the database company <a href=\"https:\/\/www.cnbc.com\/2024\/06\/11\/oracle-orcl-q4-earnings-report-2024.html\">announced<\/a> cloud deals with <span class=\"QuoteInBody-quoteNameContainer\" data-test=\"QuoteInBody\" id=\"RegularArticle-QuoteInBody-12\"><a href=\"https:\/\/www.cnbc.com\/quotes\/GOOGL\/\">Google<\/a><span class=\"QuoteInBody-inlineButton\"><span class=\"AddToWatchlistButton-watchlistContainer\" id=\"-WatchlistDropdown\" data-analytics-id=\"-WatchlistDropdown\"><button class=\"AddToWatchlistButton-watchlistButton\" aria-label=\"Add To Watchlist\" data-testid=\"dropdown-btn\"><span class=\"AddToWatchlistButton-addWatchListFromTag\"\/><\/button><\/span><\/span><\/span> and OpenAI, even as fourth-quarter results fell short of Wall Street expectations. <span class=\"QuoteInBody-quoteNameContainer\" data-test=\"QuoteInBody\" id=\"RegularArticle-QuoteInBody-13\"><a href=\"https:\/\/www.cnbc.com\/quotes\/CRWD\/\">CrowdStrike<\/a><span class=\"QuoteInBody-inlineButton\"><span class=\"AddToWatchlistButton-watchlistContainer\" id=\"-WatchlistDropdown\" data-analytics-id=\"-WatchlistDropdown\"><button class=\"AddToWatchlistButton-watchlistButton\" aria-label=\"Add To Watchlist\" data-testid=\"dropdown-btn\"><span class=\"AddToWatchlistButton-addWatchListFromTag\"\/><\/button><\/span><\/span><\/span> jumped on Monday following the announcement after the close last Friday that the cybersecurity company would be <a href=\"https:\/\/www.cnbc.com\/2024\/06\/10\/crowdstrike-rallies-on-cybersecurity-companys-inclusion-in-sp-500-.html\">added to the S&amp;P 500<\/a>.<\/p>\n<p>JMP analysts, who have the equivalent of a hold rating on Adobe, wrote in a note after the earnings report that the company&#8217;s results were uplifting despite a challenging economic environment and increased competition in design software.<\/p>\n<p>&#8220;We like how Adobe is integrating AI functionality across its product portfolio,&#8221; the analysts wrote.<\/p>\n<p>Meanwhile, analysts from Piper Sandler raised their revenue estimates slightly by $73 million for fiscal 2024 and by $71 million for 2025.\u00a0<\/p>\n<p>&#8220;Customer reactions to recent innovations were encouraging, as increasing availability of AI-powered solutions are expected to drive further user acquisition&#8221; and better average revenue per user, wrote the Piper Sandler analysts, who recommend buying the stock.<\/p>\n<p>Even after Friday&#8217;s rally, Adobe shares remain down 12% for the year. The stock closed at $525.31.<\/p>\n<\/div>\n<div class=\"group\">\n<div class=\"RelatedContent-relatedContent\" id=\"RegularArticle-RelatedContent-1\">\n<div class=\"RelatedContent-container\">\n<div class=\"RelatedContent-nonCollapsibleContent\">\n<h2 class=\"RelatedContent-header\">Don\u2019t miss these exclusives from CNBC PRO<\/h2>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<div role=\"region\" aria-labelledby=\"Placeholder-ArticleBody-Video-107428961\">\n<div role=\"button\" tabindex=\"0\" id=\"Placeholder-ArticleBody-Video-107428961\" class=\"PlaceHolder-wrapper\" data-vilynx-id=\"7000343222\" data-test=\"VideoPlaceHolder\">\n<div class=\"InlineVideo-videoEmbed\" id=\"InlineVideo-0\" data-test=\"InlineVideo\">\n<div class=\"InlineVideo-wrapper\">\n<div class=\"InlineVideo-inlineThumbnailContainer\"><span class=\"InlineVideo-videoButton\"\/><span\/><\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n\n","protected":false},"excerpt":{"rendered":"<p>Adobe CEO Shantanu Narayen speaks during an interview with CNBC on the floor at the New York Stock Exchange on Feb. 20, 2024. Brendan Mcdermid | Reuters Adobe shares surged 15% on Friday, the biggest gain since March 2020, after the software maker reported earnings and revenue that beat analysts&#8217; estimates. After the bell on [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":7328,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":""},"categories":[46],"tags":[11073,6884,9968,1036,199,8176,730,8484,1055,11072,148,10167,11071,571,11074,1424,11070,668,304],"jetpack_featured_media_url":"https:\/\/image.cnbcfm.com\/api\/v1\/image\/107375684-17084486382024-02-20t163555z_787821119_rc2d66acmhz7_rtrmadp_0_usa-stocks.jpeg?v=1718393124&w=1920&h=1080","_links":{"self":[{"href":"https:\/\/demo5.dedicatedhost247.com\/zexo\/wp-json\/wp\/v2\/posts\/7327"}],"collection":[{"href":"https:\/\/demo5.dedicatedhost247.com\/zexo\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/demo5.dedicatedhost247.com\/zexo\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/demo5.dedicatedhost247.com\/zexo\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/demo5.dedicatedhost247.com\/zexo\/wp-json\/wp\/v2\/comments?post=7327"}],"version-history":[{"count":0,"href":"https:\/\/demo5.dedicatedhost247.com\/zexo\/wp-json\/wp\/v2\/posts\/7327\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/demo5.dedicatedhost247.com\/zexo\/wp-json\/wp\/v2\/media\/7328"}],"wp:attachment":[{"href":"https:\/\/demo5.dedicatedhost247.com\/zexo\/wp-json\/wp\/v2\/media?parent=7327"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/demo5.dedicatedhost247.com\/zexo\/wp-json\/wp\/v2\/categories?post=7327"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/demo5.dedicatedhost247.com\/zexo\/wp-json\/wp\/v2\/tags?post=7327"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}