Shares of Corteva (CTVA) accelerated their decline in mid-week trade. CTVA stock fell by over 9% after the company announced it would split into two independent, public companies by next year.
Corteva’s split plan failed to change underlying issues. Moreover, it will require separate executive teams, separate financial filings, and additional costs for shareholders. This is an unfortunate development for the Dow-DuPont conglomerate.
Investors should avoid CTVA stock.
Gartner (IT) dropped by almost 6%. The Sept. 12 announcement to add $1 billion to its stock buyback program had temporarily lifted IT stock prices. Unfortunately, shareholders took advantage of the run-up to take profits. RBC rated the stock a Sector Perform last month. It cited a powerful network effect and a successful land-and-expand strategy for the rating.
Atlassian (TEAM) shares peaked at $326 in early February. The stock now trades below $150. On Sept. 18, the firm said it would buy an artificial intelligence firm, DX, paying $1 billion. This would increase its presence in the engineering intelligence space.
In the software sector, Adobe (ADBE) traded as low as around $340 on Oct. 1. Investors are not confident that its release of a free Adobe Premiere app on iPhone would lead to meaningful subscription growth. Apple users may edit their videos on their device. New features include studio-quality audio enhancements, along with AI sound effects, plus AI content generation.
