Why Netflix, Adobe, and Meta Platforms Are Declining Right Now: Records Revenue is reported

According to Dan Durn, executive vice president and CFO of Adobe, "Adobe delivered record revenue and solid profitability in the quarter, indicating that our products are mission-critical to individuals, small businesses, and the world's largest corporations." "Our operational rigour along with a strong innovation engine are fueling growth across our platforms and will power future growth as the digital economy continues to flourish," the company said.

The three main American equities indices all declined on Tuesday. The S&P 500 plummeted by 4.32%, the Nasdaq sank by 5.16%, and the Dow Jones industrials concluded the day lower by 3.94%. All 11 industries had losses on the day, ranging from 2.5% to 5.5% (communications services) (energy). Large losses of 5.3% and 5.2%, respectively, were also experienced by the consumer and tech cyclical sectors.

According to the producer pricing index (PPI) monthly report, which was released on Wednesday morning, it decreased by 0.1% from one month to the next in August, going from 9.8% in July to 8.7% last month. Early on Wednesday, the Dow and the S&P 500 both moved moderately higher but the Nasdaq lagged.

In addition to worries over inflation, BMO Capital analyst Keith Bachman's reduction of Adobe's stock to a market perform rating from outperform is also likely to be a factor in the stock's decline today. According to Bachman, there will be less demand for the company's Creative Cloud offering.

Just one day prior, Mizuho analyst Gregg Moskowitz dropped his price objective for Adobe from $480 to $440 and downgraded the company's stock. In addition, investors' reactions to remarks made by Piper Sandler analyst Thomas Champion that advertisers might still be wary about the company's Facebook platform and that TikTok could continue to grab social media market share may be causing Meta's stock to decline today.

Yesterday, Champion reduced his price estimate for Meta from $190 to $175.