The decline in Adobe's stock, following a shortfall in its net new Digital Media ARR forecast, reflects investor concerns about miscommunication and market expectations.
Mark Moerdler, despite a price target reduction, reassures investors by stating that minor issues, like foreign exchange and holiday timing, affected the forecasts, which were 'optically dimmed'.
The confusion stems from Adobe's June report that appeared to indicate an acceleration in business when, in fact, the latest forecast suggests otherwise.
Moerdler criticizes Adobe's management for not clearly communicating the complexities and timing factors influencing the business to preempt unnecessary investor anxiety.
[
Collection
]
[
|
...
]