What Happened? Shares of creative software maker Adobe (NASDAQ:ADBE) fell 13.2% in the morning session after the company reported underwhelming fourth-quarter (fiscal Q1 2025) results, as remaining performance obligations (RPO - leading growth indicator) fell short of analysts' estimates.

Adobe’s decline was mainly due to its disappointing forward guidance. Q2 revenue forecast came in at $5.77–$5.82 billion vs. the consensus of $5.8 billion. Investors were likely spooked as the lower end of the guidance still implies a chance of Adobe missing expectations.

Columbia Threadneedle Investments, an investment management company released its “Columbia Threadneedle Global Technology Growth Strategy” fourth quarter 2024 investor letter.

Adobe beat on sales and it beat on earnings last night. Management guided below Wall Street estimates for Q2 and full-year sales and earnings, however, sparking a series of price target cuts. But even with weak guidance,