Adobe Stock Plummets on Disappointing Revenue Guidance and AI Concerns

Adobe's stock dropped 11% in after-hours trading despite beating analyst estimates for the first quarter of fiscal 2024. The company's revenue guidance for the second quarter fell short of Wall Street's expectations, leading to the decline. Adobe's digital media and digital experience segments showed growth, and the company announced a new stock repurchase authorization of up to $25 billion. While the weaker-than-expected revenue guidance for Q2 may cause concern, the overall outlook remains solid, and the company's Q1 performance was strong.