Share prices of Adobe ( ADBE -2.86%) sold off after the company reported its fiscal 2024 third-quarter results on Sept. 12 and management offered weak guidance for the rest of the year. The stock now trades down by more than 10% year to date compared to an over 14% gain in the tech sector and a 17.8% gain for the Nasdaq Composite.

Adobe’s stock slid 9% on Friday after the company reported a lower forecast for its upcoming quarter than expected, bringing the software firm’s shares down into the negative for the year despite beating estimates for earnings and revenue.

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Adobe delivered another set of strong results on Thursday, with August quarter sales and earnings topping most forecasts. But guidance for the November fiscal quarter slightly lagged behind the average Wall Street forecast.

The lower forecast signals that it’s facing stiff competition, resulting in softer demand for its artificial intelligence-powered editing tools. The company reported third-quarter earnings before certain costs such as stock compensation of $4.

Adobe reported third-quarter results on Thursday that beat Wall Street expectations for sales and earnings. But the stock slid in extended trading on fourth-quarter guidance that came up short. Adobe reported third-quarter results on Thursday that beat Wall Street expectations for sales and earnings,

Photoshop maker Adobe forecast fourth-quarter earnings below analysts' estimates on Thursday, signaling stiff competition and soft demand for its AI-integrated editing tools amid challenging economic conditions.

Adobe beat Wall Street's targets for its fiscal third quarter, but its guidance for the current period missed estimates. ADBE stock fell.