Adobe (ADBE) Shares Drop Over 8%
On Thursday evening, Adobe Inc. (ADBE) reported its third-quarter financial results:
Earnings per share: actual = $4.65, expected = $4.53;
Revenue: actual = $5.40 billion, expected = $5.37 billion.
Despite beating analyst estimates, Adobe Inc.'s (ADBE) stock dropped by more than 9% due to a disappointing fourth-quarter forecast, which fell short of market expectations. According to the chart for Adobe Inc. (ADBE), trading on Friday opened with a large bearish gap. By the end of the day, the stock had fallen by more than 8% compared to Thursday's close.
To recap, on 5 June, when the stock price was around $460, we conducted a technical analysis and identified an upward channel (shown in blue), pointing to the potential resumption of a bullish trend.
Since then:
The price has risen by approximately 25% to the median line of the channel, which acted as resistance (shown by the blue arrow);
The price briefly broke through the psychological level of $500 (shown by the black arrow).
Whats next for Adobe Inc. (ADBE) stock?
It's worth noting that Friday's candle closed above its midpoint, which could be interpreted as a sign that demand forces were present, viewing the price drop as an opportunity to take long positions. Any panic, if there was any, didnt significantly extend the downward momentum.
Therefore, while the disappointing forecast may continue to weigh on ADBE's stock price, bulls might show renewed activity potentially around the psychological $500 mark or the lower boundary of the channel.
According to TipRanks, the average price target for ADBE stock is $620 over the next 12 months, indicating a potential upside of 15% from current levels.
Read more: https://fxopen.com/blog/en/oa-adobe-adbe-shares-drop-over-8/
Text source: Forex Trading Blog
