Adobe Shares Drop 8% After CEO Exit as Price Targets Fall
Adobe shares plunged 8% in pre-market after CEO Shantanu Narayen’s departure, trading near $248.25 with a $103.6 billion market cap and 6.07 million shares volume. KeyBanc set a $235 price target implying 7.6% downside, while nine analysts including Barclays trimmed to equal-weight $275, reflecting uncertainty over leadership and AI-driven product shifts.
1. Leadership Change Triggers Pre-Market Selloff
After CEO Shantanu Narayen announced his planned departure, Adobe shares plunged 8% in pre-market trading to roughly $248.25, driving market capitalization to $103.6 billion on a volume of 6.07 million shares.
2. Analysts Slash Price Targets
KeyBanc set a $235 price target implying a 7.6% downside, while nine analysts, including Barclays at equal-weight $275, reduced projections amid leadership and AI product shift concerns.
3. Strong Q1 Results and AI Growth
Adobe reported adjusted EPS of $6.06 versus $5.87 consensus and revenue of $6.40 billion against $6.28 billion estimates, as AI-related product revenue more than tripled year-over-year.
4. Volatile Trading Range and Historical Lows
Shares fluctuated between $248.01 and $256.70 intraday, trading 38.5% below this year’s peak, with a 52-week high of $422.95 and a seven-year low of $244.28.