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California based Adobe Inc Shares Crashes

California based Adobe Inc. shares slid 0.26% to $574.23 Wednesday. This proved to be an all-around grim trading session for the stock market, with the S&P 500 Index SPX falling 0.11% to 4,241.84 and Dow Jones Industrial Average DJIA falling 0.21% to 33,874.24.

Adobe Inc. closed $2.08 below its 52-week high ($576.31), which the company reached on June 22nd.The stock demonstrated a mixed performance when compared to some of its competitors Wednesday, as Microsoft Corp. MSFT fell 0.09% to $265.28, Salesforce.com Inc. CRM fell 0.52% to $241.84, and SAP SE ADR SAP fell 1.79% to $138.71.

California based Adobe inc trading volume (1.6 M) remained 561,829 below its 50-day average volume of 2.1 M.The stock’s fall snapped a four-day winning streak. Adobe’s Digital Media revenue rose 25% year over year to $2.79 billion during the quarter. This segment generates most of its revenue from the Creative Cloud segment, which houses Photoshop, Illustrator, Premiere Pro, and other apps as cloud-based subscription services.

Its Digital Experience revenue rose 21% year over year to $938 million during the second quarter. But the segment slightly benefited from the removal of its advertising cloud business which struggled with sluggish ad sales throughout the pandemic over the past two quarters. Adobe expects its Digital Experience revenue to rise another 21% year over year in the third quarter and grow roughly 20% for the full year.

They expect its revenue and earnings to rise 22% and 21%, respectively, for the year. Next year they expect its revenue and earnings to grow 15% and 14%, respectively. Based on those estimates, Adobe trades at 40 times forward earnings and 17 times this year’s sales.

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