• Home
  • Stock News
  • Privacy Policy
  • Email Whitelisting
No Result
View All Result
Dividend Stocks Report
No Result
View All Result
Home Stock News

Adobe worth $26 billion less as DocuSign fears spark ‘knee-jerk reaction’ for stock

by
December 4, 2021
in Stock News
0
0
SHARES
0
VIEWS
Share on FacebookShare on Twitter

Shares of Adobe Inc. sank to their worst performance in more than 20 months Friday, after DocuSign Inc. delivered what some saw as a the latest sign of a demand cool-down for work-from-home software.

Related Posts

Santoli: The S&P 500 nears a level that could indicate whether the recent rebound is sustainable

Stocks making the biggest moves midday: Coinbase, Spirit Airlines, Robinhood and more

Finding high dividend yielders with steady and growing payouts

Billionaire Israel Englander Pulls the Trigger on These 2 “Strong Buy” Stocks

DocuSign
DOCU,
-42.22%

Chief Executive Dan Springer acknowledged Thursday that while his electronic-signature company saw “accelerated growth” for six quarters amid the pandemic, customers have gone back to “more normalized buying patterns.” As a result, DocuSign delivered a downbeat bookings outlook, sending its shares cratering more than 40%.

Some of that investor fear seemed to transfer over to Adobe
ADBE,
-8.24%
,
which also offers contract-management software and allows for the collection of e-signatures. Adobe’s stock fell 8.2% Friday, its steepest single-day percentage drop since March 2020 and the worst performance on the day from an S&P 500
SPX,
-0.84%

stock. The move wiped away $26.3 billion in market capitalization, taking Adobe’s valuation lower than $300 billion.

The decline in Adobe shares struck Wedbush analyst Daniel Ives as a “DOCU-related selloff,” he told MarketWatch, as DocuSign’s report served as a “a barometer that the WFH tailwinds are now abating and could be a headwind for Adobe.”

“The DOCU print was a shocker and this is a knee-jerk reaction,” he said.

Subscribe: Want intel on all the news moving markets? Sign up for our daily Need to Know newsletter.

Adobe is due to post its own quarterly results Dec. 16. The company highlighted its e-signature technology in its prior earnings report, as Chief Financial Officer John Murphy noted that “third-quarter Document Cloud growth drivers included adoption of Sign in Acrobat driven by the increased need to collaborate in a hybrid work environment.”

While other at-home stocks took a hit on disappointing outlooks earlier in the course of the pandemic, DocuSign initially appeared more resilient. Its stock hit an all-time high in September and was up 165% since March 2020 as of Thursday’s close. Now the company will need to “show that it can generate, not just fulfill, demand on a regular basis,” according to an Evercore analyst.

FactSet, MarketWatch

Adobe has a more diversified business than DocuSign. While the company sells contract-related software, it has a variety of other offerings including subscriptions to creative programs like Photoshop. Adobe’s Document Cloud accounted for about 13% of the company’s overall revenue in its last-reported quarter.

Shares of Adobe were up 86% since March 2020 as of Thursday’s close.

Next Post

Bitcoin Plunges Over 20% in Another Sign of Global Market Nerves

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

email

Get the daily email about stock.

Please Enter Your Email Address:

By opting in you agree to our Privacy Policy. You also agree to receive emails from us and our affiliates. Remember that you can opt-out any time, we hate spam too!

Popular Posts

Stock News

Finding high dividend yielders with steady and growing payouts

by
June 27, 2022
0

There are times in bear markets when the better part of valor is to collect some income and get paid...

Read more

Finding high dividend yielders with steady and growing payouts

Stocks making the biggest moves midday: Coinbase, Spirit Airlines, Robinhood and more

Santoli: The S&P 500 nears a level that could indicate whether the recent rebound is sustainable

Recession may not be here yet — but stagflation is: El-Erian

Billionaire Israel Englander Pulls the Trigger on These 2 “Strong Buy” Stocks

Women in states that ban abortion will still be able to get abortion pills online from overseas

Load More

All rights reserved by www.dividendstocksreport.net

  • Home
  • Stock News
  • Privacy Policy
  • Email Whitelisting
No Result
View All Result
  • Home
  • Stock News
  • Privacy Policy
  • Email Whitelisting

© 2022 JNews - Premium WordPress news & magazine theme by Jegtheme.