Adobe faces structural headwinds from AI competition and leadership changes, resulting in a bearish technical trend and lack of investor confidence.

Adobee's holding on to that 2% loss.

Adobe's coming up. Adobe just appointed a new CEO, by the way, about a week ago. So, the new CEO, uh the stocks fell like 2% after they picked a new CEO. It just doesn't I don't know that it really like puts confidence in the stock when they're like, "Yeah, you know, our strategy sucks so badly. We got to fire the CEO and start over."

And then I got Adobe. Adobe is also not really near a line. Adobe, it'd be nice, you know, if Adobe could actually break out of this hellish downtrend, which actually looks like it is.

Let me see if I can hold this stable. I think I can if I just There we go. Kind of eyeballed it. Yeah, look at that. We finally broke out of this insane bearish downtrend right here.

Hopefully we don't revisit that line on earnings here. It'd be nice just to help all of software out if if Adobe could actually put some pants on and do something here.

Oh, here we go. Adobe Adobe beats estimates. We got a beat on Adobe. We got uh Let's zoom in on Adobe. Adobe is moving by about 2% to the downside. Of course, it is. We got uh they saw revenue of 6.7 for the third quarter.

They're coming in at 676. So, a little bit of a beat. I've got fiscal year revenue coming in at a That's a pretty tight range. Yeah, that's a slight beat. Like a nominal beat. EPS forecast comes in about five cents higher than expected.

About a percent. not like something to jump up and down about. This is a pretty nominal beat. The computers will say beat, but it's like barely.

So, Adobe comes in with like a percent. Forecast just came out. Ooh, forecast missed. A miss on the forecast. Q4 estimate was 6.85 billion. It comes in at 6.825. So slightly below.

What would that be? 6.825 divided by 6.85. It missed by like 40 basis points. It's not that big of a miss. So nominal miss on forecast, nominal beat on earnings, whatever.

Adobe AI first ARR grew 150%. Yeah, I don't know that anybody cares about that because AI first is probably such a small percentage of their business relative to the percentage of the business that's getting crushed.

I canceled my Adobe subscription, but I don't need a I don't need the Adobe anymore. I just don't need it. and just talk to Gemini. It's so much easier. [laughter] I know that or or even Anthropic, you know, they're pretty good with um uh their design products.

Fantastic. So much easier than booting up Adobe trying to figure out where all the stupid tools are. I know there are more things you can do with Adobe. I'm sure Adobe will find their way, but uh I was just using mostly Photoshop back in the day.

I used a lot of Lightroom for real estate. All of the purposes that I used Adobe for, you don't really need anymore. So, that does suck, but it'll just create a transition form.

in about two minutes, we are on deck for Restoration Hardware. Adobe's actually holding on pretty decently uh for being just down 2% on on missing guide and barely beating Rev, only being down 2%.

It's actually the stock market suggesting that they might be out of sellers. That's also entirely possible. Uh like how many how many people still own Adobe that are on the edge of potentially selling it?

Sometimes things just get so bearish for a stock. I asked myself that like how many how many sellers are truly left?

Adobe is falling off a cliff now. What did they say? Anything else that was bad? Uh, no. I think people are just waking up to what's going on.

uh oh, Adobe started going green. I wonder why. Look at that again in just a sec.