Adobe shares drop 14% as concerns about AI growth overshadow better-than-expected results

Shantanu Narayen, Chair and CEO of Adobe Systems, addresses the gathering on the first day of the three-day B20 Summit in New Delhi on Aug. 25, 2023. Adobe shares closed down 14% following the company's quarterly earnings report as investors fretted over lingering growth concerns and the software maker's artificial intelligence monetization strategy. The sell-off came despite better-than-expected results, which included adjusted earnings of $5.08 per share and $5.71 billion in revenue. That surpassed analysts' estimates of $4.97 in earnings per share and $5.66 billion in revenue, according to LSEG. Adobe called for $4.95 to $5.00 in adjusted earnings per share for the current quarter on $5.77 billion to $5.82 billion in revenue. Analysts polled by LSEG had expected $5.00 per share on $5.80 billion in revenue. Worries have mounted in recent months that the company is falling behind some competitors and losing its advantage in generative AI. The company's annualized recurring revenue ... Read full article.