Stocks: Adobe falls on lower sales forecast, Accenture surges on growth outlook
Yahoo Finance Live hosts Julie Hyman and Brian Sozzi break down trading trends for Adobe and Accenture stocks.
Video Transcript
JULIE HYMAN: Stocks bouncing around a little bit today. We had the S&P 500 briefly go into the red. It's back in the green, but not by much here, just about 15 hundreds of 1%. The Dow the strongest of the three. And the NASDAQ showing that we are seeing some weakness within large cap tech. And on that last front, Brian Sozzi, we've been talking about Adobe all day and the declines that it's been seeing on its forecast that came in weaker than estimated. And you pointed out, we have been seeing some parallels with some other enterprise facing company disappointments recently-- DocuSign, Salesforce-- that have kind of been disappointing and maybe showing the changing tides of where we are in the pandemic. But Adobe sort of the latest victim on this front, Sozz.
BRIAN SOZZI: Yeah, and you're seeing really numbers-- and I suspect it will happen at Adobe after analysts just rework their models after this quarter and their analyst day that Adobe is also having today, in addition to their earnings, all that plays out here. But you see numbers really in this space-- Adobe, DocuSign, even Salesforce-- coming down earnings estimates for next year. So in order for these stocks to work again, that downtrend in earnings estimates is going to have to stabilize. Unclear when that happens.
JULIE HYMAN: You know what's interesting to me, though? One of the other trending tickers for us today-- and Adobe, by the way, is tops on YahooFinance.com-- Accenture. I mean, what could be more enterprise facing than Accenture, right? The stock is up by 8.5%, though, because it's feeling good about 2022. It says that fiscal year revenue growth is going to be 19% to 22%, which is a lot higher than its prior forecast. So it's just interesting to me that we are seeing that kind of a sharp contrast. Obviously, Accenture very different kind of company, right, a consultant accounting firm. But nonetheless, one that obviously relies on corporations for its business.
BRIAN SOZZI: Yeah, with all these return to office plans getting delayed, Apple-- you name it. I think I just saw a headline cross on Citigroup delaying, telling workers to go back home because of what's happening here with the pandemic. You probably need the services of an Accenture to help figure it all out.
JULIE HYMAN: Yeah, maybe that's the-- I guess that's the flip side of all of this situation.
