Today is Friday, June 17, 2022.
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Adobe's Foreign-Exchange Woes
Shares of Adobe (Nasdaq: ADBE) dropped 4.54% in after-hours trading on Thursday after the software company posted mixed financial earnings.
Financials: Adobe reported earnings per share of $3.35 and revenue of $4.39 billion; both were better than expected.
Strong Quarter: Adobe had record revenue in the quarter. The Digital Media segment’s revenue went up 15% and the Digital Experience segment’s revenue went up 17%.
Bad Outlook: The problem with Adobe was its guidance. The company anticipates $17.65 billion in revenue for the full year and earnings per share of $13.50; analysts expected more.
Problems: Adobe expects a foreign-exchange headwind of $175 million throughout the next two quarters. Additional factors that the company cited as problems include the war in Europe, an increase in effective tax rates, and summer seasonality.
Numbers: It’s been a bad year for Adobe, with the stock down 35% in 2022. This includes a 10% drop in the past month.
Final Thoughts: Adobe is another software company that has suffered due to foreign exchange rates. However, compared to other software companies, its valuation is better.
Notable Earnings Today: Alithya Group (Nasdaq: ALYA).
Notable IPOs Today: NeoVolta Inc. Common Stock (Nasdaq: NEOV), SK Growth Opportunities Corp (Nasdaq: SKGRU).
Notable Equity Crowdfunding Campaigns Ending Today: Dome Audio (PicMii), Artisanal & Hemstroughts (MainVest), Rhizome (StartEngine), The Maine Market (MainVest), Freshly Baked Company (MainVest), NearStar Fusion (StartEngine), Piggyback Network (Seed At The Table).
Notable Economic Events Today: Industrial Production (9:15 a.m. ET).
Dogecoin Experiences Rollercoaster Day
Cryptocurrency Dogecoin had a rollercoaster day Thursday, with the price going up 6% and later going down 10%.
Background: Dogecoin is largely seen as a meme coin and gained popularity after celebrities, such as Elon Musk, posted memes about the coin on social media.
Recent Events: Dogecoin, feeling the same pressures as the entire crypto space, has seen its price drop. The value has fallen by a third in the past month.
Half Glass Full: Despite the drop, some investors are still bullish. Dogecoin is currently near a crucial support level and provides a strong Fibonacci cluster at its current position, according to FXStreet.
Final Thoughts: The price of Dogecoin has dropped 90% since Muck appeared on Saturday Night Live last year, according to Decrypt.
3 Housing Stocks That Aren’t Totally Bad
Most housing stocks have dropped this year, but these three have declines that aren’t that bad.
Going Home: Residential home construction company PulteGroup (NYSE: PHM) is down 35% this year and offers a $0.15 dividend.
Building: Manufactured home company Cavco Industries (Nasdaq: CVCO) is down 40% this year and recently had solid earnings.
REIT: AvalonBay Communities (NYSE: AVB) is a real estate investment trust (REIT) that specialized in apartments. The stock is down 26% this year.
Final Thoughts: All three stocks also have low price-to-earnings ratios, which means they come with a good value.
Trends to Watch
Save Money. Get Roku: Roku Stock Jumps After Unveiling Walmart E-Commerce Partnership (The Hollywood Reporter)
Good Steeling: United States Steel Stock Gains On Strong Q2 Outlook (Benzinga)
Making Me Blush: Cosmetics giant Revlon files for Chapter 11 bankruptcy protection (CNBC)
The Story Behind the Meltdown: How Crypto Lender Celsius Overheated (CoinDesk)
A Prime Event: Amazon announces 2022 Prime Day dates (CNN)
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