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Will AI help or hinder Adobe?

This week, Adobe slips after a soft sales forecast, McDonald’s dips after continued boycotts in the Middle East, and Boeing’s crisis continues.

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But first, the macro wrap-up:

Stocks remained steady throughout the week, until yesterday’s US producer prices came in hotter than expected at 0.6%, causing stocks to dip. The S&P 500 is down 0.6% this week.

Adobe’s tumble 📉

Good earnings, bad result: Despite outperforming its earnings-per-share by $0.10 and exceeding revenue by $40m, shares are down 10% after last night’s Q1 fiscal earnings.

McDonald’s slips 🍟

Yearly low: Shares in McDonald’s are down 3%, hitting their lowest point of the year, after its CFO stated international sales will fall year-on-year this current quarter.

  • Middle Eastern conflict: McDonald’s missed Wall Street estimates for Q4 sales, largely due to boycott campaigns against Western brands over perceived pro-Israeli stances in the Israel-Hamas conflict.

  • Bigger burgers: However, the fast food giant will be producing larger burgers, offering more chicken options, and improving the quality of its coffee in selected markets to keep up with shortening demand. Will it be enough to turn the stock around and get investors lovin’ it?

Boeing’s crisis continues 🛬

Strong headwinds: Since one of Boeing’s aircraft doors flew off mid-flight, the aviation regulator has paused certification of its latest 737 jets. Delta expects deliveries could be delayed until 2027.

  • Dissatisfied customers: Major airlines like Alaska and Southwest rely on Boeing's 737 jets, but are now having to cut their flights and reduce forecasts due to the delays. It’s not a good look for Boeing.

  • Looking elsewhere: Reports state United Airlines, a Boeing customer, will now turn to major rival Airbus. Boeing shares are down another 8% this week, making it one of the S&P 500’s worst performers this year.

What have we learnt this week? 🤓

  • Adobe X OpenAI: During Thursday’s earnings call, Adobe stated it’d be working on Sora, OpenAI’s text-to-video project. AI remains central to Adobe’s future plans.

  • Western brands are being boycotted: McDonald’s isn’t the only Western brand experiencing a Middle Eastern boycott; Starbucks has also had its share price affected.

  • Boeing deliveries have hit a two-decade low: Boeing’s loose door is what sparked the FAA to investigate its operations. Since, numerous problems have been found.

Stock announcements 👀

Here are the key earnings dates to look out for next week:

  • Wednesday 20th March: Micron Technology

  • Thursday 21st March: Accenture, FedEx, Nike

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*Figures and ratings correct as of 15th March 2024.

Past performance does not guarantee future results. Capital at risk when investing. This content is for educational purposes only. Shares does not provide investment advice. If you are unsure about anything, please seek advice from an authorised financial advisor.

Meet the authors

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James Ashoo

Senior Content Writer

James has been investing for over five years. His aim is to explain the hard stuff, easily! When he's not chewing your ear off about stocks and crypto, he'll most likely be telling bad jokes.

Harjas Singh

Harjas Singh

Chief Product Officer & Co-Founder

With a wealth of experience in fintech, Harjas is the man in the know when it comes to all things product. Investing features, chatting capabilities and thriving communities – he oversees all development on the Shares app!

Harry Harrison

Harry Harrison

Finance Writer

Harry is an experienced business writer, with a love for all things tech. In his free time, he enjoys reading, playing sport and winning at chess. He also loves posting inside the Shares app!