Adobe's Conservative Forecast

And, Kroger's move after failed merger.

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Today is Thursday, December 12, 2024.

The Early Bird Index today is 84.78

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Adobe's Conservative Forecast

A disappointing outlook dampened Adobe’s (Nasdaq: ADBE) financial earnings release on Wednesday, sending shares down 9.13% in after-hours trading.

Financials: Adobe reported earnings of $4.81 per share in the past quarter and revenue of $5.61 billion; both were better than expected.

Powering the Story: While Adobe touted its record quarterly revenue, the company’s outlook fell short of expectations.

Outlook: The company expects full-year revenue in 2025 to be between $23.30 billion and $23.55 billion. This is lower than anticipated, which the company attributed to foreign exchange rate changes (which means the U.S. dollar is too strong).

Stock Price: As other tech stocks boomed in 2024, Adobe has been stuck in the red. The stock was down 5% this year.

Early Bird’s Nest Egg Gains: A stronger U.S. dollar could negatively impact Adobe in several ways.

  • This makes Adobe's products and services more expensive for international customers, who need to pay more in their local currencies to purchase them.

  • With lower demand and reduced revenue from international markets, Adobe may face pressure on its profit margins.

Final Thoughts: Other companies may also feel the sting of a stronger U.S. dollar.

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Notables

Notable Earnings Today: Broadcom (Nasdaq: AVGO), Costco Wholesale (Nasdaq: COST), RH (NYSE: RH), Ciena (NYSE: CIEN), Lee Enterprises (Nasdaq: LEE), Liquidity Services (Nasdaq: LQDT), Lovesac (Nasdaq: LOVE), Quanex Building Products (NYSE: NX).

Notable IPOs Today: ServiceTitan, Inc. Class A Common Stock (Nasdaq: TTAN).

Notable Equity Crowdfunding Campaigns Ending Today: Virtuix (StartEngine), Javelina (Honeycomb), Con Alma (Honeycomb), Cake-A-Boo (Honeycomb).

Notable Economic Events Today: Jobless Claims (8:30 a.m. ET), Produce Price Index / Core PPI (8:30 a.m. ET), Fed's Balance Sheet (4:30 p.m. ET).

Kroger's Move After Failed Merger

What did Kroger (NYSE: KR) do one day after its failed merger? It launched a stock buyback, which boosted the share price by 2.89% in after-hours trading on Wednesday.

Details: Kroger rolled out a $7.5 billion stock buyback to help with the stock price. This includes $5 billion in an accelerated stock buyback.

Background: The courts blocked the company’s planned merger with Albertsons (NYSE: ACI) on Tuesday.

Final Thoughts: Krroger’s stock was already up 32% this year.

Solana’s Strong Wednesday

Bullish indicators, an overall cryptocurrency market rally, and a decreased supply on exchanges all helped Solana’s price jump about 6% on Wednesday.

Final Thoughts: Solana is up over 200% this year.

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The contents of Early Bird are intended for informational and entertainment purposes only. They do not constitute trade or investment recommendations and they are not financial or legal advice. Readers are encouraged to consult licensed professionals for personalized guidance regarding their financial or legal situations.