Nasdaq, Bitcoin decline; Adobe stumbles due to weak expectations

Adobe shares decline after reporting record quarterly revenue, modest guidance

45 minutes ago

Shares of Adobe (ADBE) fell on Friday morning after the company beat first-quarter earnings estimates, but issued modest guidance for the second quarter.

The company reported first-quarter fiscal 2024 revenue of $5.18 billion. This record rise exceeded analyst estimates compiled by Visible Alpha and represents 11% year-over-year growth.

Adobe's net income for this quarter of $2.05 billion also exceeded analysts' expectations and rose from the previous quarter and the same period last year. Diluted earnings per share (EPS) of $4.48 beat expectations and grew compared to the prior quarter and year as well.

The company said it expects second-quarter revenue of between $5.25 billion and $5.3 billion. However, analysts expected guidance at the upper end of that range at $5.3 billion.

Adobe shares fell more than 13% to $493 on Friday morning. However, the stock is up nearly 47% in the past year.

-Naomi Buchanan

Stocks make the biggest moves pre-market

1 hour and 29 minutes ago

Gains:

• Madrigal Pharmaceuticals (MDGL): Shares of the biopharmaceutical company jumped more than 20% after the U.S. Food and Drug Administration approved its treatment for obesity-related hepatitis.
• Vodafone Group PLC (VOD): Shares of the British telecom company jumped more than 5% after it agreed to sell its Italian business to Swisscom AG.
• (RIVN): Shares of the electric truck maker rose more than 3% after a Piper Sandler analyst upgraded the stock to buy, citing its attractive valuation and new vehicle platform.

losses:

• Adobe Inc. (ADBE): Shares of the design software maker fell 11% after it beat earnings expectations but provided light sales guidance for the current quarter.
• Jabil Inc. (JBL): Shares of the electronics maker fell more than 10% after it also forecast weaker-than-expected revenue in the current quarter.
• (ULTA): Shares of the cosmetics retailer fell 8% after it forecast lower-than-expected full-year earnings as rising costs weigh on margins.

Stock futures changed little

2 hours and 16 minutes ago

Futures tied to the Dow Jones Industrial Average rose about 0.2% in pre-market trading on Friday.

Standard & Poor's 500 futures rose about 0.1%.

Nasdaq 100 futures were down 0.1% from Thursday's close about an hour before markets opened.