Key insights
- Adobe experienced a significant drop despite recent bullish sentiment, triggered by concerns stemming from IBM and ServiceNow's results. Investors are seemingly overreacting, selling off Adobe despite its relatively low P/E ratios. This highlights the current market's sensitivity and potential for volatility, especially concerning AI-related tech stocks.
When market finally looked like it understood that Adobe won't die because of AI, and institutionals began to take positions, today out of a sudden everybody got scared and sold.
I checked if Antropic launched someting, but no, it was because of IBM and Service Now results. And their results even weren't that bad, but investors came to the conclusion that they must panic sell Adobe, because is over. The same Adobe that has a P/E of 14 and forward P/E of 8.
So 2 weeks of strong gains erased in a single day. It's very fun to be Adobe investor.