Adobe Shares Jump 4.2%
In the latest trading session, the share prices for Adobe experienced a significant push. The officials at the cloud software company were joyous in sharing the earnings for the recent quarter.
They were glad because their company had generated stronger-than-expected earnings in the fourth quarter. With the earnings coming above the expectations of the analysts, the investors were all excited.
They flocked to buy more shares of the software company, which saw the share prices for the company surge at a high rate.
Amidst the market downtrend, Adobe has achieved a huge goal, which has helped push the stock trading prices of the company.
Adobe Finalizing Figma Acquisition Deal
The investors are also very excited about the company’s next major move where it is planning to go for its largest company acquisition.
According to the reports, Adobe is close it finalizing its deal for the acquisition of Figma, a privately-held design startup. As per the sources, the software company is aiming to finalize the acquisition deal for $20 billion.
This will be the largest acquisition carried out by Adobe ever since it has become operational.
Adobe’s Fourth Quarter Earnings
For the fourth quarter that ended on December 2, Adobe has reported that it has recorded $4.53 billion worth of revenue.
The revenue growth they have recorded in the fourth fiscal quarter is 10% more than the revenue recorded in the past year.
The adjusted non-GAAP earnings they have generated are $3.60 per share which is in line with the bottom line. The company has successfully generated stronger earnings than the analysts’ forecast.
The forecast for the adjusted non-GAAP that the analysts had shared for the fiscal fourth quarter was $3.59 per share.
Revenue in the Running Quarter
Adobe officials have confirmed that in the quarter, they are expecting to generate earnings worth $4.625 billion. They are expecting that their earnings will also rise in the running quarter.
The teams have predicted that their earnings would be between $3.65 per share and $3.70 per share. Whether it is the bottom target or the top, the earnings target is higher than the analysts’ forecast.
Following the announcement, Adobe’s shares have experienced a significant surge. The shares of the software company have been pushed up by 4.2%.
At the time of writing, Adobe shares are exchanging hands at a high of $342.50 per share.
The share prices for Meta Platforms have experienced a pump as well. A day back, the tech giant’s shares were being pulled lower but the latest session has witnessed a rebound.
This happened as the JPMorgan analysts have given the tech company their approval in terms of the company’s efforts of cutting costs.
The analysts have praised the company’s latest approach and determination to cut extra costs. The company’s business had been badly impacted by the extra costs in the form of employees.
Recently, the company announced that it had planned to let go of 11,000 employees to cut costs. It was Mark Zuckerberg who made the announcement.
He dropped the sad news through a video message where he admitted that he had made the decision himself. He went on to take full responsibility for the matter.
Although it has left 11,000 employees devastated but it has increased the confidence level of the investors. By cutting 11,000 employees, the company will be saving up tremendously.
This would eventually help the company expand its business in the right direction.
Given the amount of money and resources Meta has invested in the metaverse technology, it was necessary that serious measures were taken to cut costs.
Following the company’s announcement, the analysts at JPMorgan upgraded Meta’s stock status and increased the stock price target to a maximum of $115 per share.
The minimum stock target they have set is $35 per share. After the announcement, Meta’s share prices surged by 1.9%. At the time of writing, Meta’s share prices are at $118.29 per share.