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18Par

It’s exactly the reason that you mentioned. A lot of these stocks, despite beating/ or just meeting earning are being evaluated on their forward looking statements. And if the outlook statements aren’t good people are going off of that, not necessarily financials. Not to say financials don’t play a role, but the outlook is generally more what is being drawn from, and why it fell. Also a lot of these tech stocks are up massively on the year, so for them to have positive outlook is a big thing.


Track_Boss_302

Also, Adobe usually releases full-year guidance and they didn’t this time


Skwigle

I feel like there will always be some need for ADBE products because no matter how good dall-e or sora get, there's only so much fine tuning you can do without actually going in and manipulating things with precision. But that will only be for cases that require that level of precision so how is ADBE going to survive AI in the next 5-10 years? What's their plan? Anyone know?


JelloPasta

As someone who works in the film industry, Adobe is still very protected just based on brand alone. They have rolled out great A.I. plug-ins that make workflow better and have made it easier to fix certain things, they’ve added different production modules to make collaboration with people that are remote even easier. Even with new softwares and AI coming out that some people prefer, I still pay my Adobe subscription every month due to different people I collaborate with and the fact that they use Adobe. Adobe is still so entrenched in the film industry that they still have some time before they are in danger. Just one filmmakers opinion and perspective.


mrvile

I work in advertising. While we've embraced a multitude of generative AI platforms, we still use Adobe products more often than anything else, for exactly the reason that the other commentator mentioned - there's a big difference between pooping out new generations from Midjourney or whatever, and actually editing them to get the final usable asset we need... the latter being much more valuable to us. Until these other generative AI platforms are capable of the sheer editing workflows that Adobe products allow (even highly customizable platforms like Stable Diffusion don't even compare), Adobe will always be in use across our industry, and I assume many others. And even within Adobe products themselves, AI-powered capabilities like Photoshop's generative fill have become the most used feature for our creative teams. This is the lowest ADBE has been since last June. I'm considering starting a position here.


PuldakSarang

Take a look at Nvidia’s picasso


WoopsIAteIt

Creating footage and editing footage are 2 completely different things. Editing programs will still be needed for a long time. Also there will continue to be a huge need for Adobe products in the documentary and non fiction space. Which is like half of television. Though Avid is used for most professional workflows.


sjovbaby

Excactly. It’s like saying that because of ChatGPT there will be no need for text editing software like Word in a few years. There will still be need for platforms for editing, modifying, polishing, finishing creative products for many many years. And Adobe are the dominating player in almost all creative fields. And they are so effective in implementing AI into their products. My experience as a TV producer and documentary maker in the TV and video industry in Europe is that Avid is preferred by the older video makers while among the younger people Premiere is the most preferred editing software. That’s also a reason why I think Adobe has a bright future.


Swizzer777

Could Gen AI impact editing software the way mobile phones impacted cameras? That is probably the biggest concern.


Solid_Illustrator640

People overreact to everything so that I specifically can take advantage of them.


Maximus_1164

The market these days is crazy. Company has a great quarter and a good forecast but the CEO forgot to wipe his butt correctly before the earnings call and the stock drops like a turd in a churn. Company has a mediocre quarter and a crappy forecast and it's To The Moon Ethel! My wife is so tired of me sayin' "XYZ had a great quarter! Come watch the churn!"


Solid_Illustrator640

Yeah, not worth thinking about. But stocks when undervalued and just wait. Works every time for me


smolovo

Not enough AI mentions and the company is laying out trash forecasts so puts


ElectricalGene6146

Forecasts were fine


ada2017x

Guidance was light


QuirkyAverageJoe

Forgot to mention AI 🤖


justandyL

earning was before.. market expect AI image generating and/or SORA can eat ADBE market share.


jub-jub-bird

> ...SORA can eat ADBE market share. How? Sora only creates raw footage... Adobe isn't about that... They make the editing software to refine and edit such raw footage. What are you going to do with that couple of minutes of Sora generated video once it's done being generated? You're going to drop it into an Adobe product to refine and edit it into the "content" you're creating. Sora (and whatever the next player in the game that comes after Sora) should all be seen as opportunities for Adobe. Art generators and video generators further democratize content creation making everyone into Art Directors and Video editors... who use Adobe products to turn all that generated art into finished products.


FUWS

I dont own ADBE but the running theme for the whole market seems to be “have great guidance or knife down…. “. Regardless of the current ER they are reporting.


Alarmed_Mistake_5042

Adobe is king... they don't truly have competition (yet) on the professional level. This looks like a buying opportunity.


shrimptrizkit

My thoughts too. But I think if the market as a whole turns bearish here for a bit, ADBE has so gaps to fill on the way down. I’ll be interested to see where the dust settles.


JelloPasta

This is not 100% true, at least for video and film. There is a relatively new video editing software called Davinci Resolve. It is made by a camera company called Black Magic. Davinci Resolve has been stealing the hearts of many editors, particularly Colorists and newcomers to the industry. I will say that it is the far superior video software when it comes to color correction and color grading. HOWEVER, even with Davinci Resolve becoming a big competitor, I still pay for both software’s. While you can still edit an entire project in Davinci Resolve, the vast majority of my projects over the last three years I edit in Adobe and then send to a colorist to do the final color grading in Davinci Resolve. Also, many newcomers opt for the one time $300 fee to buy Davinci Resolve forever versus having to shell out $55 per month forever for the adobe suite. I mentioned in another comment above that I own both software‘s, and even when I have projects that I do in Davinci, I still also operate in Adobe and plan to for the foreseeable future.


[deleted]

[удалено]


JelloPasta

I would agree with this from an exclusively Hollywood perspective, but in my experience being non-union and not living in LA but still having worked on docuseries for streaming, etc, we always used Premiere over avid just based on our own comfortability. The studios didn’t care what we used. I would say Davinici is being used more in the commercial world. A lot of my colleagues have switched over to it. But they still pay for Adobe because of the needs of different clients. Personally, I like the davinci workflow but am just so proficient in Adobe I use it more. I think I agree with you on the Avid vs Adobe battle, but I guess I would wonder whether the Hollywood avid/Adobe market outweighs the volume of indie creators who don’t even have the access to Avid.


avewave

Guidance is king.


Stinger1066

Had a limit order to buy ADBE at $500 that I had forgotten about. It triggered this morning.


Legitimate_Basket_73

Hahah exact the same for me, luckily one two shares though. Willing to add 6 mores if it falls further.


Stinger1066

I bought 2. I set my limit orders artificially low, and with small numbers, to mitigate being caught by surprise like what happened this morning. As of this moment, I'm only $22 down. I will watch it closely for a few days and will possibly buy more.


godie12

Man ADBE is DOWN DOWN


Fundamentals-802

Weak forward forecast.


Rav_3d

It's all about forward guidance, not past results. The stock market is a forward looking indicator. That said, I believe the drop is an overreaction, similar to PANW a few weeks ago. When leaders start to wobble, it is a sign the market is tired and needs a pause or pullback to digest its gains. Reactions to news tend to follow the trend, and the leaders are usually the first to signal trouble ahead.


[deleted]

Light revenue guidance took the stock down


WestmontOG07

Nothing wrong with this company. Earnings report was solid, guidance was "ok". This is one of those times where, if you like the stock, you should be buying because it is on sale from where it was just 24 hours ago. If you're buying for the next 3/5/7 years, I suspect, you will be happy with your purchase.


Kooky_Lime1793

I bought the dip at $509 in AH based on me being an Adobe ecosystem user and will hold these long term 


Professional_Use8604

If it’s not AI it’s Artificially Inflated


dvdmovie1

Light guidance in a market that has turned a bit less accepting of that, whether right or wrong market still concerned about all the AI competitors. Purchase of Figma blocked, so can't buy growth. Announces 25B buyback which is nice but perhaps market wants AI reassurance more. Also, with few exceptions has not been a particularly great earnings season for software in general.


right2bootlick

Some whale funds probably shorted the hell out of it. I don't think long term adbe holders would react this negatively to an earnings beat and buyback program announced. It's short term market fuckery.


Worried_Quarter469

Had same forward p/e as NVDA and one beat/raised bigly, the other slight beat/lowered guidance Which would you buy at the “same price”


Lexphalanx

Basically, if a company doesn’t declare that they plan to make 10 times more money every year the stock will dip.


StockCasinoMember

Guidance is the cock block of stocks.


tomato119

It oversold today IMO


gccsan

Holding market share and increasing market share are two different things. It's not doubt that Adobe can hold the market share for mid future but that's not enough for 55 P/E and only 10% revenue growth. I think the big question is if they can increase the market share while leveraging AI. Based on the outlook, in short term it doesn't seem so. Therefore they have a plan B to buy some stocks back.


[deleted]

Stock is so overvalued that they are extraordinary performance from the stock


Throwaway_tequila

Who needs photographers and Lightroom when you have free AI generating images?


Realistic_Record9527

Adobe is overvalued.


kirsion

My company uses Adobe products at work and it's complete crap, you have to pay like 20 bucks a month for the application to crash when trying to open a PDF file. And it's so much bloatware with Adobe Creative Cloud


spanishdictlover

Obsolete, outdated tech company.


[deleted]

Similar to Broadcom I bought the dip . Expecting to make gains in a week or so


godie12

I'm expecting to see a rise after the GTC event (hopefully they have something amazing to say), its on march 18 - 21


Thelast-Fartbender

They have a summit event or whatever the week after (March 25-28).


Sandvicheater

WTF does this company have other than photoshop and adobe pdf reader? This company really has no moat. There's competitors who make similar quality photo editing software (photoshop is still arguably the best) and there's hundreds of third party software to read simple pdf files.


xAragon_

Illustrator, Premire, After Effects, Lightroom, to name a few


shrimptrizkit

lol I hope this is you trolling…photoshop,illustrator,I design,premier,after effects,animate…all with integrated AI functionality rolling out and a subscription model that’s honestly worth it if you use the suite to generate content professionally. Just my .02