What's awesome about it? 0.09 of GAAP EPS. Trading at 60x non-GAAP EPS, 50x free cash flow. Cash flow was down a lot YoY. Share count is up in spite of huge share repurchases. This is a $40 stock at best.
THE PROBLEM may be: Marketwatch says they earned 0.09 eps, whereas other reports, probably correctly, state 0.30. This is f---ed up, as was the early release. Now, they beat on the top and bottom line, and they've been all over the place in pricing, and are now basically flat-line or a slight increase.
Strange also is ORCL. It misses by 0.02, and slightly on revenue. Yet, instead of staying down to a 5% loss (I think it was down to 38.30) and now is around 38.90. I guess investors are thinking the 3.5% drop is a buying opportunity. BUT, it seems the guidance and some of the areas they reported in, were not very good, so why buy it at all?
Yes it is overvalued a bit but with good reason, these guys are doing really well…..market wanted .25 they gave .30 EPS…Revs were higher than expected too….$40/share….with idiot investors not knowing how the market is supposed to work, yea I think you're right……this thing will be down tomm and if it's not it will be up a measly 2-3%. All out of the money call option buyers just bent over and took it…..
Not sure either. My only guess is that Adobe has a really complicated biz model and its taking some time to digest. Last time it went down in AH too until end of conf. call because impatient sellers couldn't decipher between current reported revs. vs. guidance on cloud (and those that could bought in next day). So I'm thinking even though they beat estimates people selling now are not "getting" future and thinking "still a money losing" proposition.