Figma Acquisition News Hurt Adobe (ADBE) Stock in Q3 - InvestingChannel

Figma Acquisition News Hurt Adobe (ADBE) Stock in Q3

Renaissance Investment Management, an investment management company, released its “Large Cap Growth Strategy” third quarter investor letter. A copy of the same can be downloaded here. In the third quarter, the strategy returned -3.46% (net) compared to a -3.60% return for the Russell 1000 Growth Index and -4.88% return for the S&P 500 Index. The focus on high-quality stocks led the strategy to outperform the indexes in the quarter. The Consumer Discretionary sector significantly contributed to the strategy’s performance while the Technology sector detracted from the performance. In addition, please check the fund’s top five holdings to know its best picks in 2022.

Renaissance Investment highlighted stocks like Adobe Inc. (NASDAQ:ADBE) in its Q3 2022 investor letter. Headquartered in San Jose, California, Adobe Inc. (NASDAQ:ADBE) is a global software company. On December 27, 2022, Adobe Inc. (NASDAQ:ADBE) stock closed at $335.09 per share. One-month return of Adobe Inc. (NASDAQ:ADBE) was 1.86%, and its shares lost 41.99% of their value over the last 52 weeks. Adobe Inc. (NASDAQ:ADBE) has a market capitalization of $155.783 billion.

Renaissance Investment made the following comment about Adobe Inc. (NASDAQ:ADBE) in its Q3 2022 investor letter:

“On the negative side, Adobe Inc. (NASDAQ:ADBE) was the largest detractor from portfolio performance in the quarter. The company reported decelerating revenue growth in its most recent quarter, but more concerning was the announced acquisition of privately held Figma for a record $20 billion. While management made a compelling case for the acquisition, the price paid revived fears that Adobe is facing increasing competitive threats.”

Adobe, software

Adobe Inc. (NASDAQ:ADBE) is in 22nd position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 93 hedge fund portfolios held Adobe Inc. (NASDAQ:ADBE) at the end of the third quarter, which was 92 in the previous quarter.

We discussed Adobe Inc. (NASDAQ:ADBE) in another article and shared the list of Jim Cramer’s comeback stocks. In addition, please check out our hedge fund investor letters Q3 2022 page for more investor letters from hedge funds and other leading investors.

 

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Disclosure: None. This article is originally published at Insider Monkey.

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