Angela Palumbo

Adobe forecast first-quarter revenue between $5.63 billion to $5.68 billion, below Wall Street’s consensus.

Adobe stock is tumbling on Wednesday after guidance disappoints. Investors are concerned the company isn’t yet seeing major gains from its AI offerings.

Microchip Technology stock’s decline was deepening on Monday after a BofA Securities analyst downgraded shares of the semiconductor company on concerns of “multiple headwinds.” Vivek Arya downgraded shares of Microchip to Underperform from Neutral, and cut his price target on the stock to $65 from $80 on Monday. Microchip didn’t immediately respond to a request for comment on the downgrade.

After the stock market closed on Monday, Red Cat reported a fiscal second-quarter loss of 18 cents a share on revenue of $1.5 million. There are only two analysts on FactSet that cover Red Cat They expected the company to report a loss of nine cents a share on revenue of $4.1 million. Chief Executive Jeff Thompson said in the earnings release Monday that in the second half of the year, Red Cat decided to focus on its Black Widow drone.

Cloudflare stock was rising Tuesday after a Stifel analyst upgraded shares of the cybersecurity company, citing confidence in its growth in the coming year. Adam Borg upgraded shares of Cloudflare to Buy from Hold and increased his price target to $136 from $95, which implies a 19% increase from the stock’s closing price of $114.65 on Monday. “We believe Cloudflare is positioned to deliver improving execution, and upside to numbers, against a massive and growing [total addressable market],” Borg wrote in a research note.

Many tech stocks had a blowout year, but some are still underperforming the broader market. This Truist analyst has picked several internet stocks that have been through either booms or busts that he believes will shine in 2025. Youssef Squali wrote in a research note on Tuesday that he has confidence the positive tailwinds that have helped push some tech stocks higher in 2024, including excitement over artificial intelligence and the strength in e-commerce, will continue in the new year.

Salesforce’s updated artificial-intelligence agent program has given Wall Street analysts reason to be even more optimistic on the stock headed into the New Year. Salesforce announced Agentforce 2.0 after the stock market closed Tuesday. “Agentforce 2.0 takes our revolutionary Salesforce digital labor platform to another level, with new reasoning, integration and customization features that supercharge autonomous agents with unprecedented levels of intelligence, precision and accuracy,” Chief Executive Marc Benioff said in the news release.

Bernstein analyst Mark Shmulik and J.P. Morgan analyst Doug Anmuth both name Amazon stock as a Best Idea for 2025.

Netflix stock is by no means cheap following its great run this year, yet UBS believes it has more room to run. Analyst John Hodulik increased his target for Netflix stock price to $1,040 from $825 on Thursday, a call that implies a 16% increase from the stock’s closing price of $899.55 on Wednesday. “Netflix has sustained investment and stands to benefit from a robust content slate in 4Q/’25, supporting continued sub growth while enhancing its ability to drive monetization through pricing/ad demand,” Hodulik wrote.

The Magnificent 7 stocks including Nvidia and Tesla are rising Friday after slipping earlier this week.