September P/L Challange
$Adobe (ADBE.US)$ drops close to 9% post earning release notwithstanding earnings beats as company provides lower than expected earning guidance. More than 90% of Adobe's revenue comes from subscription service which is recurring in nature. A closer look of its revenue shows that its main revenue segment - Digital Media segment grows by 11% and Digital Experience segment also grows by 10%. In my view, it is still a fundamentally strong company with wide moat. Notwithstanding the drop, the stock is still up about 10% to date. Let's see what will be the price action when the market opens today.
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