Analysts Downgraded This Stock AFTER 50%-Plus Losses

Maybe you think of Adobe (ADBE) as the PDF-reader company... Or maybe you remember the company's once-ubiquitous Adobe Flash web tools. [Chaikin PowerFeed]( [TONIGHT: Important Update From Marc Chaikin – Details Here ➤]( Analysts Downgraded This Stock AFTER 50%-Plus Losses By Pete Carmasino, chief market strategist, Chaikin Analytics Maybe you think of Adobe (ADBE) as the PDF-reader company... Or maybe you remember the company's once-ubiquitous Adobe Flash web tools. But you might not know that Adobe is now a subscription-revenue powerhouse... In 2021, 73% of Adobe's revenue came from its "digital media" segment. And that segment mostly focuses on the company's Creative Cloud offerings. You likely haven't heard of the Creative Cloud. But almost every content-creation professional interacts with it. And every month, like it or not, they pay for that service. From a business standpoint, this recurring revenue makes Adobe a fundamentally good company. And for the most part, the Power Gauge agrees with that idea. But that doesn't mean you want to own Adobe's stock right now... It's down roughly 58% from its November 2021 high. It's a poster child in the bear market's tech wreck. And now, Wall Street analysts are finally getting around to downgrading it. Today, let's explore what the Power Gauge saw and Wall Street missed... Recommended Links: [TONIGHT: A Severe Financial Crisis Is Underway]( It doesn't matter if you have money in the markets right now, or you're waiting on the sidelines. The short period we're about to enter could have the power to make - or destroy - fortunes. And what you do in the coming days could determine your wealth for the next decade. [Click here to learn more, then tune in tonight](. [When Life Gives You a 'Fat Pitch,' Take It!]( Where the setup is so good... so lopsided in your favor... that you have to swing. It's the ONE decision that will have the biggest impact on your wealth over decades. And Dr. David "Doc" Eifrig has found exactly that - the "fat pitch" setup of a lifetime. [Click here for full details](. The Power Gauge rates Adobe as "neutral+" right now. That basically tells us the company looks good overall. But importantly, its stock trades below its long-term trend line. In fact, Adobe's stock recently plunged almost 17% in a single day. It's hitting a new 52-week low almost daily. And it's now trading around its COVID-19 pandemic low. Adobe's stock has tumbled from a high of about $688 per share in November 2021 to roughly $286 per share today. As I said, that's a staggering 58% decline in less than a year. Now, it's no secret that markets fluctuate. But for a stock to fall that far in a relatively short period... you might think something is seriously wrong with the company. That doesn't seem to be the case with Adobe, though. The recurring revenue from its Creative Cloud is a great quality. It's a telltale sign of a fundamentally strong business. And earlier this month, Adobe announced plans to buy design platform Figma... To me, that seems like a good idea. Adobe is taking advantage of the tough environment to expand its offerings. It's a $20 billion buyout – half in cash and half in stock. For Adobe, that isn't much money. The company's market cap is roughly $134 billion. However, Wall Street wasn't thrilled. And investment banks downgraded the stock in response. But the problem is... the stock's downtrend started months before this announcement. Where were all the Wall Street analysts when Adobe's sell-off began last November? Let's take a look at Adobe's price chart... [Chaikin PowerFeed] I want to draw your attention to two things... First, notice the Power Gauge rating in the bottom panel. Adobe's stock fell below its long-term trend line in November – which pushed its rating to "neutral+" at the time. But that wasn't a signal to sell. It just meant to be careful. That brings me to the second thing... Look at the relative strength panel in the chart. Notice the breakdown in early December, when Adobe traded at roughly $650 per share. That was the signal to sell the stock. And it leads me back to the Wall Street analysts... Why did they wait until the stock fell to about $300 per share before downgrading it? Is Adobe's deal to buy Figma really the catalyst they needed to act? I'm not sure exactly. But frankly, it doesn't matter. My point is simple... If you have the right tools, like the Power Gauge, you don't need to rely on Wall Street. You can make your own decisions – and you'll likely save yourself a lot of money in the process. Good investing, Pete Carmasino Editor's note: It's more important than ever to have the right tools. The broad market is down roughly 21% this year. And many stocks – like Adobe – have fallen much further. In short... if you're like most folks, you're likely looking for a "financial lifeline" right now. That's why Chaikin Analytics founder Marc Chaikin is teaming up with our corporate affiliate Altimetry's Joel Litman to host a FREE online event. No matter what happens with the overall market, they believe one approach could help you "5x" your money from here. The event is set to begin promptly at 8 p.m. Eastern time TONIGHT. [Sign up right here](. Market View Major Indexes and Notable Sectors # Hld: Bullish Neutral Bearish Dow 30 -1.71% 0 24 6 S&P 500 -1.73% 40 341 118 Nasdaq -1.79% 7 63 30 Small Caps -1.53% 282 1085 488 Bonds +1.68% — According to the Chaikin Power Bar, Large Cap stocks are more Bearish than Small Cap stocks. Major indexes are mixed. * * * * Top Movers Gainers [rating] GIS +5.72% [rating] K +2.02% [rating] DXC +1.81% [rating] ILMN +1.78% [rating] CPB +1.59% Losers [rating] CZR -8.04% [rating] WBD -7.49% [rating] CCL -6.81% [rating] LVS -6.77% [rating] LYV -6.11% * * * * Earnings Report Reporting Today Rating Before Open After Close DRI ACN, FDS COST No earnings reporting today. Earnings Surprises [rating] GIS General Mills, Inc. Q1 $1.11 Beat by $0.11 [rating] LEN Lennar Corporation Q3 $5.18 Beat by $0.32 [rating] KBH KB Home Q3 $2.32 Beat by $0.29 * * * * Sector Tracker Sector movement over the last 5 days Staples -1.56% Health Care -3.45% Financial -3.49% Discretionary -4.14% Information Technology -4.39% Industrials -4.76% Utilities -4.96% Communication -5.04% Materials -5.80% Real Estate -7.18% Energy -7.66% * * * * Industry Focus Health Care Equipment Services 2 39 37 Over the past 6 months, the Health Care Equipment subsector (XHE) has underperformed the S&P 500 by -2.89%. Its Power Bar ratio, which measures future potential, is Very Weak, with more Bearish than Bullish stocks. It is currently ranked #20 of 21 subsectors and has moved down 3 slots over the past week. Indicative Stocks [rating] CNMD CONMED Corporation [rating] ICUI ICU Medical, Inc. [rating] CUTR Cutera, Inc. * * * * You have received this e-mail as part of your subscription to PowerFeed. If you no longer want to receive e-mails from PowerFeed, [click here](. You’re receiving this e-mail at {EMAIL}. For questions about your account or to speak with customer service, call [+1 (877) 697-6783 (U.S.)](tel:18776976783), 9 a.m. - 5 p.m. Eastern time or e-mail info@chaikinanalytics.com. Please note: The law prohibits us from giving personalized investment advice. © 2022 Chaikin Analytics, LLC. All rights reserved. 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