Adobe (ADBE) Shares Plunge, Holding Near 22-Month Lows
Last week, Adobe Inc. (ADBE) reported its quarterly financial results:
Earnings per share: Actual = $5.08, Expected = $4.97
Gross revenue: Actual = $5.71 billion, Expected = $5.66 billion
Additionally, according to CNBC, the design software giant announced plans to double its AI revenue by the end of the financial year. However, despite these positive figures, Adobe Inc. (ADBE) shares plummeted by approximately 13%, returning to price levels last seen in May 2023.
This decline may reflect investor concerns over Adobes AI monetisation strategy and the potential loss of its competitive edge in generative AI.
Technical Analysis of Adobe Inc. (ADBE) Shares
Price movements have established key points (marked with circles) forming a downward channel, which has remained relevant for over a year:
The price has fallen to the lower boundary, which previously acted as support in June 2024.
It remains below the psychological level of $400 but has not dropped significantly further.
The price has not fallen below the 13 January low, recorded after the earnings report.
These factors suggest that demand is preventing further declines in ADBE shares. If positive catalysts emerge, buyers may attempt to push the price back above the $400 level, potentially opening the path towards the channels median.
Read more: https://fxopen.com/blog/en/oa-adobe-adbe-shares-plunge-holding-near-22-month-lows/
Text source: Forex Trading Blog
