Down more than 48%; Should you bet on Adobe (NASDAQ:ADBE) stocks now?

from Adobe (NASDAQ: ADBE) the stock is under pressure due to macroeconomic uncertainty, currency headwinds and fears of dilution from the Figma deal. Despite the difficulties, the ADBE reiterated its forecast for the fourth quarter, which is encouraging. However, near-term headwinds may continue to limit the rise in Adobe shares.

Notably, the software company reaffirmed its fourth quarter financial guidance at its meeting of financial analysts. It expects to post adjusted earnings of $3.50 per share on revenue of $4.52 billion. The EPS forecast is in line with analysts’ expectations.

Additionally, Adobe also provided preliminary guidance for fiscal year 2023. It expects to generate revenue between $19.1 billion and $19.3 billion. Additionally, Adjusted EPS is expected to be between $15.15 and $15.45. Analysts expect ADBE to post earnings of $15.52 per share on revenue of $19.85 billion.

ADBE stock gained about 3% during after-hours trading following the forecast update.

While investors cheered Adobe’s outlook, macroeconomic weakness affecting demand, unfavorable currency movements and competitive headwinds could spoil the party.

Is Adobe Buy, Hold, or Sell?

Wall Street analysts are cautiously bullish on Adobe shares, given the uncertain economic environment. ADBE stock received 12 Buy recommendations and 14 Hold recommendations for a Moderate Buy consensus rating. Moreover, the analysts’ average price target of $373.30 implies an upside potential of 27.4%.

ADBE stock is getting a positive signal from hedge fund managers, who bought 903.6,000 shares last quarter. However, insiders sold ADBE shares worth $79.9,000. Overall, ADBE stock has a smart neutral score of seven out of 10 on TipRanks.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.