This morning, investors will watch PDF and Photoshop supplier Adobe Systems (ADBE). After markets closed on Wednesday, the firm reported 2025 guidance that did not meet expectations.
Adobe earned $4.81 a share (non-GAAP) as revenue increased by 11.1% Y/Y to $5.61 billion. For FY 2025, revenue of up to $23.55 billion missed consensus by around $0.25 billion. Sellers are over-reacting. Salesforce (CRM) and ServiceNow (NOW) both trade at a significant premium. CRM stock, for example, trades at a forward P/E of 35 times, compared to 30 times for ADBE stock.
After CEO Liang assured shareholders that the company would file the necessary reports, Super Micro Computer (SMCI) fell by 5.55%. At below $40, the stock risks re-testing the $25.00 zone. Investors who do not want the exposure of the controversy around the firm have other options. Western Digital (WDC), Seagate (STX), Hewlett-Packard Enterprise (HPE), and Dell Technologies (DELL) are alternative investments.
Uber (UBER) dropped in sympathy to General Motors (GM) announcing the Cruise self-driving write-off. At a conference hosted by Barclay, Uber discussed the growth deceleration in the pace of ride-hailing gross bookings. Still, Uber enjoys above-average growth rates in San Francisco. It also has strong gross bookings that are above average.
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