Adobe shares are expected to decline 8.85% to $249 as the CEO steps down.

crypthub

1 day ago

Market Reaction

Adobe shares tumbled 8.85% on March 13, closing at $249.48 after briefly hitting $248.01. The slide occurred despite Q1 revenue of $6.40 billion and adjusted EPS of $6.06, both beating estimates. The stock opened at $248.81, rose to $256.70, then fell as investors digested the news. Volume rose to 5.69 million, slightly above the 5.48 million average.

Leadership Change and Competition

CEO Shantanu Narayen announced his retirement after more than 25 years, prompting uncertainty. His departure comes as AI challengers such as Canva and Stability AI press Adobe’s Creative and Document clouds. Analysts praised the earnings but warned that the leadership transition could affect Adobe’s ability to defend its software moat.

Future Outlook

Adobe lifted its Q2 revenue guide to $6.43‑$6.48 billion and expects EPS of $5.80‑$5.85, with ARR up 10.2%. Morningstar keeps a $380 fair‑value target, while Piper Sandler cut its price target to $540. Technicals show the price below the 50‑day ($288) and 200‑day ($340) moving averages, with support near $244‑$248 and resistance around $260‑$270. CoinCodex projects the stock near $218 by end‑2026, reflecting AI‑related pricing pressure.