Good Evening. Investors evaluated the potential economic implications of the Federal Reserve’s prolonged war against inflation, and stocks in the United States fell on Thursday.
The S&P 500 index dropped 3.25%, its lowest since December 2020. The Nasdaq dropped more than 4%, extending the index’s year-to-date loss to more than 30%. For the first time since January 2021, the Dow dropped 2.42%, to settle below 30,000.
EARNINGS & INSIGHTS
Adobe (ADBE), a digital media and marketing technology provider, announced late Thursday that its fiscal second-quarter results exceeded expectations. However, it fell short of expectations for the current quarter and the full year. In extended trading, the stock of ADBE dropped.
Earnings per share: $3.35 vs. $3.31 estimate
- Revenue: $4.39 billion vs. $4.35 billion
“We delivered another quarter of strong financial results, with greater than $2 billion in operating cash flows demonstrating the strength of Adobe’s growing revenue streams and financial discipline,” said Dan Durn, executive vice president, and CFO, Adobe. “Our operating model continues to fuel consistent growth, enabling the company to invest in category-leading cloud solutions and emerging innovations that are gaining traction in the marketplace.”
However, Adobe has released third-quarter and full-year projections for the fiscal year 2022, which include the following:
- Higher taxes, foreign-exchange headwinds, and Russia’s war with Ukraine are among the things weighing on Adobe’s outlook.
At closing, ADBE finished in the red by 3.14% at $365.08 per share
DELIVERY
The ultrafast delivery service Jokr, which has raised $430 million to date, announced Monday that it will cut its US operations in order to focus on its more profitable Latin American business. The company now joins the expanding line of 15-minute delivery startups that are shuttering fast.
The delivery service announced the closure of nine micro-fulfillment centers in Boston and New York, as well as the layoff of about 5% of its workforce. But, in comparison to its quick counterparts, it’s off to a rather easy start.
- In December 1520 became the first super-fast delivery startup to close its doors.
- In March, just 16 days after Russia invaded Ukraine, Buyk, a US subsidiary of a prominent Russian food delivery service, declared bankruptcy.
- After a prospective agreement with DoorDash fell through in March, Fridge No More became Funding No More.
- Even GoPuff, which was valued at $15 billion in July, lay off 3% of its workforce in March, putting an end to rumors that it will host an IPO tailgate soon.
Bottom line: Last year, venture capitalists spent hundreds of millions of dollars on 15-minute-delivery firms in the hopes of revolutionizing the way city dwellers to buy groceries. Investors are losing their enthusiasm for riskier bets now, as interest rates rise and markets become more volatile.