Adobe shares fall amid announcement of Figma purchase

Adobe shares fell 17 per cent on news of the Figma purchase. This is the biggest drop since 2010, CNBC notes.

Adobe shares fall amid announcement of Figma purchase

At the close of trading on Nasdaq on September 15, Adobe securities fell by 16.79% to $309.13 apiece. This happened against the background of investors' concerns about the prospects of the deal and the fact that Adobe is seriously worried about the high competition.

Featured book: Social Psychology 13th Edition PDF version

Simultaneously with the announcement of the deal, Adobe reported for its third fiscal quarter, which ended September 2, 2022. The company's revenue was a record $4.43 billion (+13% year-over-year). This was in line with analysts' expectations, writes CNBC.

Adobe announced the acquisition of startup Figma, which develops a tool of the same name for designers. The deal is scheduled to close in 2023. Until then, the companies will work independently.

Co-founder Dylan Field will remain CEO and report to David Wadhwani, president of Adobe's digital media division.

Read also

Withholding TaxGeneral Accepted Accounting StandardsLetter Of IntentWhat is scarcityYear-to-dateLong-Term LiabilitiesNon-Disclosure AgreementChief Operating OfficerReturn on InvestmentChief Marketing OfficerChief Financial OfficerAsset Protection TrustChief Security OfficerCertified Financial PlannerElectronic Funds TransferLimited Liability CompanyClose of BusinessCompany FinanceCash FlowAutomated Teller MachineReturn on EquityStagnation meaningCertified Management AccountantNon-Profit OrganizationCertified Financial ManagerChief Technology OfficerProfit and Loss StatementGross Margin

Business and Finance terms

Withholding Tax General Accepted Accounting Standards Letter Of Intent Scarcity Year-to-date Long-Term Liabilities Non-Disclosure Agreement Chief Operating Officer Return on Investment Chief Marketing Officer Chief Financial Officer Asset Protection Trust Chief Security Officer Certified Financial Planner Electronic Funds Transfer Limited Liability Company Close of Business Company Finance Cash Flow Automated Teller Machine Return on Equity stagnation Certified Management Accountant Non-Profit Organization Certified Financial Manager Chief Technology Officer Profit and Loss Profit and Loss Statement Gross Margin