TLDR
- Adobe shares fell ~7.5% after longtime CEO Shantanu Narayen announced his resignation after 18 years
- Ulta Beauty dropped 8.4% on slower growth guidance for fiscal 2027 despite beating Q4 sales estimates
- SentinelOne slid 5.1% after a steeper-than-expected Q4 loss and weak Q1 guidance
- Fertilizer stocks Mosaic and CF Industries rose on expectations of price hikes from Strait of Hormuz shipping disruptions
- US stock futures edged higher Friday, with oil above $100 a barrel as fighting in Iran continued
Adobe’s stock took a sharp hit Friday morning after the company confirmed its CEO of 18 years, Shantanu Narayen, will step down. The board has launched a search for a new chief executive.
Narayen led Adobe through a period of major growth. When he took over, Adobe brought in $3.58 billion in annual revenue. That figure has since grown to $23.77 billion.
The resignation came despite Adobe posting better-than-expected fiscal first-quarter earnings. Investors appeared more focused on the leadership change than the financial results.
Adobe faces ongoing questions about how it will compete as artificial intelligence tools continue to disrupt the creative software market.
Ulta Beauty also weighed on sentiment Friday. The cosmetics and fragrances retailer dropped 8.4% after issuing guidance that pointed to slower growth in the coming fiscal year.
Ulta’s fourth-quarter sales did beat expectations. But the cautious outlook for fiscal 2027 was enough to push shares lower.
Cybersecurity and Other Movers
SentinelOne fell 5.1% after reporting a 20% jump in revenue for the quarter. The cybersecurity firm posted a deeper-than-expected loss and its first-quarter guidance came in below what analysts had hoped for.
PagerDuty also declined after posting quarterly results that missed analyst projections. EverCommerce dropped on weaker-than-estimated adjusted earnings per share.
Insulet fell 4% after the insulin pump maker said it was issuing a voluntary correction for certain lots of its Omnipod 5 Pods. The company said some pods from specific lots may have a small tear in internal tubing that could cause insulin to leak inside the pod rather than being delivered to the body.
On the positive side, Rubrik edged higher after beating fourth-quarter estimates on earnings per share, sales, and subscription annual recurring revenue.
Fertilizer Stocks and Market Overview
Mosaic rose 3.5% and CF Industries gained 2.7%. Both fertilizer companies continued to benefit from expectations that shipping disruptions in the Strait of Hormuz will push prices higher.
Tesla rose 0.6% in premarket trading, shrugging off news from rivals. Rivian unveiled pricing and specs for its R2 platform, while Lucid Group introduced a new midsize vehicle lineup and a robo-taxi concept at its investor day.
US stock futures were modestly higher Friday morning. Oil traded above $100 a barrel as fighting in Iran continued. Investors were also waiting on the release of personal consumption expenditures price index data for February.
By mid-morning, Dow futures were up 86 points, S&P 500 futures gained 11 points, and Nasdaq 100 futures rose 37 points.
Considering a new stock? You may want to see what’s on our watchlist first.
Our team at Knockout Stocks follows top-performing analysts and market-moving trends to spot potential winners early. We’ve identified five stocks gaining quiet attention that could be worth watching now. Create your free account to unlock the full report and get ongoing stock insights.Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
