{"id":2686,"date":"2010-09-24T08:57:16","date_gmt":"2010-09-24T12:57:16","guid":{"rendered":"http:\/\/drduru.com\/onetwentytwo\/?p=2686"},"modified":"2010-09-24T10:23:41","modified_gmt":"2010-09-24T14:23:41","slug":"adobe-crash","status":"publish","type":"post","link":"https:\/\/drduru.com\/onetwentytwo\/2010\/09\/24\/adobe-crash\/","title":{"rendered":"Adobe&#8217;s Crash: Wash-out or Tradebots Gone Wild?"},"content":{"rendered":"<p>Adobe Systems, Inc. (ADBE) was punished on Wednesday for an earnings report that produced guidance slightly below analyst expectations. The stock dropped as much as 26% after ADBE guided Q4 earnings to $0.48-0.54 EPS vs. $0.53 analyst consensus and Q4 revenues $950M to $1.0B vs. $1.03B analyst consensus (from briefing.com).<\/p>\n<p>The severity of the sell-off did not seem justified by the small size of the miss. Perhaps the selling was more about a complete reversal of the over-excitement from two weeks ago on the heels of Apple&#8217;s announcement that <a href=\"http:\/\/www.apple.com\/pr\/library\/2010\/09\/09statement.html\">the company is relaxing earlier restrictions to its iOS Developer Program license<\/a> (sections 3.3.1, 3.3.2 and 3.3.9). The supposed implication for Adobe is that its tools can now be used in the production of applications (as long as they do not download code). The reversal in this euphoria was massive:<\/p>\n<ul>\n<li>A near record 109 million shares traded (current record is 136 million shares traded on a 31% drop on May 25, 1990).\n<li>Volume almost 12 times recent average volume of 9.2M shares.\n<li>Volume almost 21% of the 523 million float.\n<\/ul>\n<p>Such a massive response looked like a wash-out to me, so I bought the stock near the open to play a short-term bounce. The natural stop loss is at the low of the day. The chart below summarizes the recent trading action. In particular, note how this week&#8217;s sell-off accomplished in one day what it took six days to do in response to June&#8217;s earnings disappointment &#8211; with the stock having almost the exact starting and ending points. (Click for a larger view).<\/p>\n<p><center><br \/>\n<figure id=\"attachment_2687\" aria-describedby=\"caption-attachment-2687\" style=\"width: 290px\" class=\"wp-caption aligncenter\"><a href=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2010\/09\/100923_ADBE.jpg\"><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2010\/09\/100923_ADBE-300x255.jpg\" alt=\"ADBE swiftly punished for announcing disappointing earnings again\" title=\"ADBE swiftly punished for announcing disappointing earnings again\" width=\"300\" height=\"255\" class=\"size-medium wp-image-2687\" srcset=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2010\/09\/100923_ADBE-300x255.jpg 300w, https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2010\/09\/100923_ADBE.jpg 610w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><\/a><figcaption id=\"caption-attachment-2687\" class=\"wp-caption-text\">ADBE swiftly punished for announcing disappointing earnings again<\/figcaption><\/figure><br \/>\n*<strong>Chart created using TeleChart:<\/strong> <a href=\"http:\/\/www.worden.com\/CURRENTAFPROMO.aspx?AFCODE=866\"><img decoding=\"async\" src=\"http:\/\/www.worden.com\/Content\/Banners\/images\/88x31.gif\"><\/a><br \/>\n<\/center><br \/>\n<\/p>\n<p>The action in options on Wednesday was also very dramatic. In particular, open interest surged on puts and calls, particularly those expiring in October, November, and January. I am very intrigued by the focus on calls in the face of all the selling in the stock. It makes the put action look like small hedges to those bullish bets. The list of the change in open interest from Wednesday to Thursday is posted at the end of this piece, sorted by the change in open interest in descending order.<\/p>\n<p>Everything seems to be in place for a day where sellers flushed and washed themselves out of the system, except a friend of mine threw in the possibility that most of this massive action was the result of the dreaded tradebots. I have no data for assessing the impact of the tradebots and quants, but with 20% of the entire float trading hands and most of that happening within the first few hours of trading, I have to respect the possibilities. However, given the good risk\/reward ratio on the bullish trade here using the same technicals that drive many automated programs, I am willing to take on the possibility that the machines ran counter to the opinions of the humans on Wednesday.<\/p>\n<p><strong>Change in ADBE options open interest from 9\/22\/10 to 9\/23\/10, sorted by the change in open interest in descending order<br \/>\n<\/strong> (Source: Yahoo!finance options chain)<br \/>\nADBE101016C27    CALL at     27 exp. 16-Oct-2010     5538 to   16663 = +11125<br \/>\nADBE101016C31    CALL at     31 exp. 16-Oct-2010     3278 to   11892 =  +8614<br \/>\nADBE110122P24    PUT  at     24 exp. 22-Jan-2011      236 to    8340 =  +8104<br \/>\nADBE101016C26    CALL at     26 exp. 16-Oct-2010      412 to    8018 =  +7606<br \/>\nADBE110122C30    CALL at     30 exp. 22-Jan-2011     2893 to    9663 =  +6770<br \/>\nADBE101016P26    PUT  at     26 exp. 16-Oct-2010      645 to    6323 =  +5678<br \/>\nADBE101016C28    CALL at     28 exp. 16-Oct-2010      722 to    5425 =  +4703<br \/>\nADBE101120C29    CALL at     29 exp. 20-Nov-2010       13 to    3904 =  +3891<br \/>\nADBE101016P27    PUT  at     27 exp. 16-Oct-2010     7902 to   11186 =  +3284<br \/>\nADBE101016C29    CALL at     29 exp. 16-Oct-2010     2384 to    5525 =  +3141<br \/>\nADBE101016P25    PUT  at     25 exp. 16-Oct-2010      739 to    3855 =  +3116<br \/>\nADBE101016C30    CALL at     30 exp. 16-Oct-2010     8672 to   11691 =  +3019<br \/>\nADBE101016C25    CALL at     25 exp. 16-Oct-2010      540 to    3348 =  +2808<br \/>\nADBE110122C26    CALL at     26 exp. 22-Jan-2011      277 to    2663 =  +2386<br \/>\nADBE110122P22.5  PUT  at   22.5 exp. 22-Jan-2011     2370 to    4723 =  +2353<br \/>\nADBE101016C24    CALL at     24 exp. 16-Oct-2010      253 to    2394 =  +2141<br \/>\nADBE101120P25    PUT  at     25 exp. 20-Nov-2010        0 to    1997 =  +1997<br \/>\nADBE101120C25    CALL at     25 exp. 20-Nov-2010        0 to    1537 =  +1537<br \/>\nADBE101120C30    CALL at     30 exp. 20-Nov-2010      129 to    1387 =  +1258<br \/>\nADBE110122P26    PUT  at     26 exp. 22-Jan-2011      689 to    1928 =  +1239<br \/>\nADBE110122C28    CALL at     28 exp. 22-Jan-2011      520 to    1570 =  +1050<br \/>\nADBE101016C34    CALL at     34 exp. 16-Oct-2010    12726 to   11730 =   -996<br \/>\nADBE101016P31    PUT  at     31 exp. 16-Oct-2010     7019 to    6082 =   -937<br \/>\nADBE110416P23    PUT  at     23 exp. 16-Apr-2011      180 to    1055 =   +875<br \/>\nADBE101016P30    PUT  at     30 exp. 16-Oct-2010     4017 to    3168 =   -849<br \/>\nADBE110122C31    CALL at     31 exp. 22-Jan-2011      764 to    1576 =   +812<br \/>\nADBE110416P26    PUT  at     26 exp. 16-Apr-2011       73 to     872 =   +799<br \/>\nADBE101016P24    PUT  at     24 exp. 16-Oct-2010     5574 to    6345 =   +771<br \/>\nADBE101016P32    PUT  at     32 exp. 16-Oct-2010     4004 to    3252 =   -752<br \/>\nADBE120121P25    PUT  at     25 exp. 21-Jan-2012      453 to    1113 =   +660<br \/>\nADBE101120C32    CALL at     32 exp. 20-Nov-2010       62 to     693 =   +631<br \/>\nADBE110122P25    PUT  at     25 exp. 22-Jan-2011     3351 to    3972 =   +621<br \/>\nADBE110416C29    CALL at     29 exp. 16-Apr-2011       70 to     687 =   +617<br \/>\nADBE110416P25    PUT  at     25 exp. 16-Apr-2011       96 to     700 =   +604<br \/>\nADBE110416C28    CALL at     28 exp. 16-Apr-2011       54 to     655 =   +601<br \/>\nADBE101016P22.5  PUT  at   22.5 exp. 16-Oct-2010     1018 to    1617 =   +599<br \/>\nADBE110122C25    CALL at     25 exp. 22-Jan-2011      968 to    1553 =   +585<br \/>\nADBE110122C27    CALL at     27 exp. 22-Jan-2011      920 to    1497 =   +577<br \/>\nADBE101120C22.5  CALL at   22.5 exp. 20-Nov-2010        0 to     569 =   +569<br \/>\nADBE101120P22.5  PUT  at   22.5 exp. 20-Nov-2010        0 to     568 =   +568<br \/>\nADBE120121C25    CALL at     25 exp. 21-Jan-2012      300 to     809 =   +509<br \/>\nADBE110416C30    CALL at     30 exp. 16-Apr-2011      177 to     642 =   +465<br \/>\nADBE110416P20    PUT  at     20 exp. 16-Apr-2011       16 to     465 =   +449<br \/>\nADBE110122C36    CALL at     36 exp. 22-Jan-2011      690 to    1116 =   +426<br \/>\nADBE110416P17.5  PUT  at   17.5 exp. 16-Apr-2011       25 to     446 =   +421<br \/>\nADBE110122C29    CALL at     29 exp. 22-Jan-2011      806 to    1168 =   +362<br \/>\nADBE110416C24    CALL at     24 exp. 16-Apr-2011       15 to     368 =   +353<br \/>\nADBE110416C26    CALL at     26 exp. 16-Apr-2011       33 to     358 =   +325<br \/>\nADBE110122C20    CALL at     20 exp. 22-Jan-2011      256 to     575 =   +319<br \/>\nADBE101016C35    CALL at     35 exp. 16-Oct-2010     5416 to    5117 =   -299<br \/>\nADBE101016C33    CALL at     33 exp. 16-Oct-2010    12310 to   12605 =   +295<br \/>\nADBE110416C27    CALL at     27 exp. 16-Apr-2011       57 to     345 =   +288<br \/>\nADBE110122C22.5  CALL at   22.5 exp. 22-Jan-2011      423 to     709 =   +286<br \/>\nADBE101016C32    CALL at     32 exp. 16-Oct-2010     3014 to    3297 =   +283<br \/>\nADBE101016C22.5  CALL at   22.5 exp. 16-Oct-2010       13 to     254 =   +241<br \/>\nADBE101016P34    PUT  at     34 exp. 16-Oct-2010     1285 to    1050 =   -235<br \/>\nADBE120121C20    CALL at     20 exp. 21-Jan-2012       62 to     289 =   +227<br \/>\nADBE101016C20    CALL at     20 exp. 16-Oct-2010       18 to     235 =   +217<br \/>\nADBE120121C30    CALL at     30 exp. 21-Jan-2012      302 to     518 =   +216<br \/>\nADBE110416P15    PUT  at     15 exp. 16-Apr-2011        0 to     214 =   +214<br \/>\nADBE110122P33    PUT  at     33 exp. 22-Jan-2011      882 to     671 =   -211<br \/>\nADBE101120P20    PUT  at     20 exp. 20-Nov-2010        0 to     200 =   +200<br \/>\nADBE101120C31    CALL at     31 exp. 20-Nov-2010       19 to     216 =   +197<br \/>\nADBE110122C24    CALL at     24 exp. 22-Jan-2011      109 to     300 =   +191<br \/>\nADBE120121C22.5  CALL at   22.5 exp. 21-Jan-2012       27 to     212 =   +185<br \/>\nADBE101016P28    PUT  at     28 exp. 16-Oct-2010     5705 to    5534 =   -171<br \/>\nADBE120121P20    PUT  at     20 exp. 21-Jan-2012      131 to     295 =   +164<br \/>\nADBE101016P20    PUT  at     20 exp. 16-Oct-2010      268 to     429 =   +161<br \/>\nADBE110122C40    CALL at     40 exp. 22-Jan-2011     3095 to    3254 =   +159<br \/>\nADBE101016P36    PUT  at     36 exp. 16-Oct-2010     1345 to    1191 =   -154<br \/>\nADBE110416C25    CALL at     25 exp. 16-Apr-2011       50 to     201 =   +151<br \/>\nADBE130119P20    PUT  at     20 exp. 19-Jan-2013       10 to     159 =   +149<br \/>\nADBE120121P22.5  PUT  at   22.5 exp. 21-Jan-2012       55 to     199 =   +144<br \/>\nADBE110122P17.5  PUT  at   17.5 exp. 22-Jan-2011     1231 to    1364 =   +133<br \/>\nADBE130119P15    PUT  at     15 exp. 19-Jan-2013        0 to     124 =   +124<br \/>\nADBE120121P17.5  PUT  at   17.5 exp. 21-Jan-2012       34 to     145 =   +111<br \/>\nADBE110122P32    PUT  at     32 exp. 22-Jan-2011      504 to     613 =   +109<br \/>\nADBE110122P29    PUT  at     29 exp. 22-Jan-2011      227 to     335 =   +108<br \/>\nADBE101016P33    PUT  at     33 exp. 16-Oct-2010    10199 to   10094 =   -105<br \/>\nADBE110122P27    PUT  at     27 exp. 22-Jan-2011     2275 to    2173 =   -102<br \/>\nADBE101016C36    CALL at     36 exp. 16-Oct-2010     6499 to    6399 =   -100<br \/>\nADBE110416P30    PUT  at     30 exp. 16-Apr-2011       92 to     190 =    +98<br \/>\nADBE101120P29    PUT  at     29 exp. 20-Nov-2010      220 to     315 =    +95<br \/>\nADBE101120P17.5  PUT  at   17.5 exp. 20-Nov-2010        0 to      86 =    +86<br \/>\nADBE120121P30    PUT  at     30 exp. 21-Jan-2012     2351 to    2433 =    +82<br \/>\nADBE110416C31    CALL at     31 exp. 16-Apr-2011      129 to     209 =    +80<br \/>\nADBE110416P28    PUT  at     28 exp. 16-Apr-2011       10 to      90 =    +80<br \/>\nADBE110416P24    PUT  at     24 exp. 16-Apr-2011      182 to     258 =    +76<br \/>\nADBE101016P29    PUT  at     29 exp. 16-Oct-2010     9036 to    8961 =    -75<br \/>\nADBE110122P30    PUT  at     30 exp. 22-Jan-2011     4208 to    4135 =    -73<br \/>\nADBE130119C30    CALL at     30 exp. 19-Jan-2013       15 to      85 =    +70<br \/>\nADBE101016P37    PUT  at     37 exp. 16-Oct-2010      330 to     262 =    -68<br \/>\nADBE110416C20    CALL at     20 exp. 16-Apr-2011        0 to      67 =    +67<br \/>\nADBE110122C32    CALL at     32 exp. 22-Jan-2011      857 to     791 =    -66<br \/>\nADBE101016P35    PUT  at     35 exp. 16-Oct-2010      719 to     654 =    -65<br \/>\nADBE101120C33    CALL at     33 exp. 20-Nov-2010      215 to     277 =    +62<br \/>\nADBE120121C35    CALL at     35 exp. 21-Jan-2012      307 to     369 =    +62<br \/>\nADBE101120P30    PUT  at     30 exp. 20-Nov-2010       71 to     128 =    +57<br \/>\nADBE120121C15    CALL at     15 exp. 21-Jan-2012        0 to      55 =    +55<br \/>\nADBE130119P25    PUT  at     25 exp. 19-Jan-2013       70 to     122 =    +52<br \/>\nADBE110416C32    CALL at     32 exp. 16-Apr-2011      223 to     272 =    +49<br \/>\nADBE110122C33    CALL at     33 exp. 22-Jan-2011     1755 to    1804 =    +49<br \/>\nADBE101120P33    PUT  at     33 exp. 20-Nov-2010      442 to     398 =    -44<br \/>\nADBE110122C34    CALL at     34 exp. 22-Jan-2011      745 to     788 =    +43<br \/>\nADBE130119P30    PUT  at     30 exp. 19-Jan-2013        0 to      40 =    +40<br \/>\nADBE130119C45    CALL at     45 exp. 19-Jan-2013       90 to      53 =    -37<br \/>\nADBE130119C25    CALL at     25 exp. 19-Jan-2013        0 to      35 =    +35<br \/>\nADBE101120C34    CALL at     34 exp. 20-Nov-2010      346 to     311 =    -35<br \/>\nADBE110122P28    PUT  at     28 exp. 22-Jan-2011     1053 to    1021 =    -32<br \/>\nADBE120121C17.5  CALL at   17.5 exp. 21-Jan-2012        0 to      31 =    +31<br \/>\nADBE101120P31    PUT  at     31 exp. 20-Nov-2010      118 to     147 =    +29<br \/>\nADBE120121P15    PUT  at     15 exp. 21-Jan-2012       45 to      70 =    +25<br \/>\nADBE110122C35    CALL at     35 exp. 22-Jan-2011     5247 to    5222 =    -25<br \/>\nADBE110122C37    CALL at     37 exp. 22-Jan-2011      833 to     808 =    -25<br \/>\nADBE101120C20    CALL at     20 exp. 20-Nov-2010        0 to      24 =    +24<br \/>\nADBE120121P35    PUT  at     35 exp. 21-Jan-2012      410 to     387 =    -23<br \/>\nADBE110416C23    CALL at     23 exp. 16-Apr-2011        0 to      23 =    +23<br \/>\nADBE110416C33    CALL at     33 exp. 16-Apr-2011      438 to     461 =    +23<br \/>\nADBE120121C40    CALL at     40 exp. 21-Jan-2012     1776 to    1798 =    +22<br \/>\nADBE110416P35    PUT  at     35 exp. 16-Apr-2011      151 to     172 =    +21<br \/>\nADBE101016C38    CALL at     38 exp. 16-Oct-2010     2603 to    2583 =    -20<br \/>\nADBE120121P40    PUT  at     40 exp. 21-Jan-2012      359 to     342 =    -17<br \/>\nADBE110122P20    PUT  at     20 exp. 22-Jan-2011     1309 to    1293 =    -16<br \/>\nADBE110122P12.5  PUT  at   12.5 exp. 22-Jan-2011      150 to     165 =    +15<br \/>\nADBE110122C45    CALL at     45 exp. 22-Jan-2011     1992 to    2006 =    +14<br \/>\nADBE110122C15    CALL at     15 exp. 22-Jan-2011       22 to      36 =    +14<br \/>\nADBE130119P17.5  PUT  at   17.5 exp. 19-Jan-2013        0 to      13 =    +13<br \/>\nADBE110416C35    CALL at     35 exp. 16-Apr-2011      253 to     265 =    +12<br \/>\nADBE110416P27    PUT  at     27 exp. 16-Apr-2011       83 to      95 =    +12<br \/>\nADBE110416C34    CALL at     34 exp. 16-Apr-2011      254 to     265 =    +11<br \/>\nADBE110122P10    PUT  at     10 exp. 22-Jan-2011      183 to     193 =    +10<br \/>\nADBE130119C35    CALL at     35 exp. 19-Jan-2013       31 to      41 =    +10<br \/>\nADBE110122P34    PUT  at     34 exp. 22-Jan-2011      251 to     241 =    -10<br \/>\nADBE110416P33    PUT  at     33 exp. 16-Apr-2011      204 to     214 =    +10<br \/>\nADBE101120C37    CALL at     37 exp. 20-Nov-2010      263 to     272 =     +9<br \/>\nADBE130119P45    PUT  at     45 exp. 19-Jan-2013       10 to      18 =     +8<br \/>\nADBE110416P40    PUT  at     40 exp. 16-Apr-2011      111 to     119 =     +8<br \/>\nADBE101016P38    PUT  at     38 exp. 16-Oct-2010      101 to      93 =     -8<br \/>\nADBE120121P45    PUT  at     45 exp. 21-Jan-2012      178 to     186 =     +8<br \/>\nADBE130119P35    PUT  at     35 exp. 19-Jan-2013        0 to       8 =     +8<br \/>\nADBE101016C17.5  CALL at   17.5 exp. 16-Oct-2010        0 to       7 =     +7<br \/>\nADBE101016P17.5  PUT  at   17.5 exp. 16-Oct-2010       21 to      27 =     +6<br \/>\nADBE110416P32    PUT  at     32 exp. 16-Apr-2011      258 to     263 =     +5<br \/>\nADBE101120C36    CALL at     36 exp. 20-Nov-2010      386 to     382 =     -4<br \/>\nADBE110416C40    CALL at     40 exp. 16-Apr-2011      166 to     162 =     -4<br \/>\nADBE110416C15    CALL at     15 exp. 16-Apr-2011        1 to       4 =     +3<br \/>\nADBE110122P35    PUT  at     35 exp. 22-Jan-2011     2654 to    2651 =     -3<br \/>\nADBE110416C17.5  CALL at   17.5 exp. 16-Apr-2011        0 to       3 =     +3<br \/>\nADBE101120P32    PUT  at     32 exp. 20-Nov-2010       87 to      84 =     -3<br \/>\nADBE120121C45    CALL at     45 exp. 21-Jan-2012      467 to     464 =     -3<br \/>\nADBE130119C20    CALL at     20 exp. 19-Jan-2013        0 to       2 =     +2<br \/>\nADBE110416C37    CALL at     37 exp. 16-Apr-2011      200 to     198 =     -2<br \/>\nADBE110122C17.5  CALL at   17.5 exp. 22-Jan-2011      119 to     117 =     -2<br \/>\nADBE110122P40    PUT  at     40 exp. 22-Jan-2011      878 to     876 =     -2<br \/>\nADBE110416P29    PUT  at     29 exp. 16-Apr-2011      138 to     140 =     +2<br \/>\nADBE101120C35    CALL at     35 exp. 20-Nov-2010      238 to     237 =     -1 <\/p>\n<p>Be careful out there!<\/p>\n<p>Full disclosure: long ADBE<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Adobe Systems, Inc. (ADBE) was punished on Wednesday for an earnings report that produced guidance slightly below analyst expectations. The stock dropped as much as 26% after ADBE guided Q4 earnings to $0.48-0.54 EPS vs. $0.53 analyst consensus and Q4 revenues $950M to $1.0B vs. $1.03B analyst consensus (from briefing.com). The severity of the sell-off &#8230; <a title=\"Adobe&#8217;s Crash: Wash-out or Tradebots Gone Wild?\" class=\"read-more\" href=\"https:\/\/drduru.com\/onetwentytwo\/2010\/09\/24\/adobe-crash\/\">Read more<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[220,32,135,62],"tags":[428,429,1597],"class_list":["post-2686","post","type-post","status-publish","format-standard","hentry","category-earnings","category-options","category-stock-market-trading","category-technical-analysis","tag-adbe","tag-adobe-systems-inc","tag-technical-analysis"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Adobe&#039;s Crash: Wash-out or Tradebots Gone Wild? - ONE-TWENTY TWO: Trading Financial Markets<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/drduru.com\/onetwentytwo\/2010\/09\/24\/adobe-crash\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Adobe&#039;s Crash: Wash-out or Tradebots Gone Wild? - ONE-TWENTY TWO: Trading Financial Markets\" \/>\n<meta property=\"og:description\" content=\"Adobe Systems, Inc. (ADBE) was punished on Wednesday for an earnings report that produced guidance slightly below analyst expectations. The stock dropped as much as 26% after ADBE guided Q4 earnings to $0.48-0.54 EPS vs. $0.53 analyst consensus and Q4 revenues $950M to $1.0B vs. $1.03B analyst consensus (from briefing.com). The severity of the sell-off ... 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