Companies

Adobe Reports Solid Results, Raises Outlook, but Stocks Slide

An analyst attributed the stock’s weak performance to the company’s failure to convince investors that its AI efforts will drive higher returns.
Adobe Reports Solid Results, Raises Outlook, but Stocks Slide
The Adobe logo is displayed on the side of the Adobe Systems headquarters in San Jose, Calif. Justin Sullivan/Getty Images
Panos Mourdoukoutas
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News Analysis

Adobe delivered another quarter of solid sales and earnings, raising the outlook for fiscal year 2025. However, it failed to impress Wall Street, with its stock continuing to underperform the broad market. Management has yet to convince investors that it can monetize its AI strategy and catch up with other tech giants.

Panos Mourdoukoutas
Panos Mourdoukoutas
Author
Panos Mourdoukoutas is a professor of economics at Long Island University in New York City. He also teaches security analysis at Columbia University. He’s been published in professional journals and magazines, including Forbes, Investopedia, Barron's, IBT, and Journal of Financial Research. He’s also the author of many books, including “Business Strategy in a Semiglobal Economy” and “China's Challenge.”