The overly bullish stock market does not tolerate companies posting weak quarterly results or reporting negative news. This is characterized by three stocks.
Adobe (ADBE) fell by 13.67% to close at $492.46 after posting doubts about its artificial intelligence prospects. The software firm reported a slow ramp-up in its monetization of AI. Firefly, a free generative AI for its creative users, has potential growth later this year. Markets are unwilling to wait over the long term. They are selling the stock now to avoid more bad news later.
In the U.S. real estate market, Zillow (Z) dropped by 13.49% to close at $47.71. The National Association of Realtors agreed to pay $418 million to settle a lawsuit. The NAR will pay the amount over four years, resolving claims about collusion within the real estate industry. It maintained artificially high agent commissions.
Watch for Opendoor (OPEN), Redfin (RDFN), Zillow, and Zillow Group (ZG) rebounding from last Friday’s sell-off. The NAR will maintain its walled garden. Overlaying Google Maps with real estate listings for free is unlikely. Expect real estate services firms to thrive from here.
In the aerospace sector, Boeing (BA) continues to post negative news. The FAA is investigating how a plane from United Airlines (UAL) on a flight last Friday lost an external panel. Last week, a Boeing whistleblower was found dead. John Barnett was set to testify against Boeing.
