Adobe’s decline was mainly due to its disappointing forward guidance. Q2 revenue forecast came in at $5.77–$5.82 billion vs. the consensus of $5.8 billion. Investors were likely spooked as the lower end of the guidance still implies a chance of Adobe missing expectations.

Adobe beat on sales and it beat on earnings last night. Management guided below Wall Street estimates for Q2 and full-year sales and earnings, however, sparking a series of price target cuts. But even with weak guidance,