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Market Data Table

Breakfast News: Surprise CEO Exit Rocks Adobe

March 13, 2026

Thursday's Markets
S&P 500 6,673 (-1.52%)
Nasdaq 22,312 (-1.78%)
Dow 46,678 (-1.56%)
Bitcoin $70,369 (-0.13%)

Chart showing Adobe's quarterly gross profit steadily rising over the past three years, from $4.24 billion in the second quarter of 2023 to $$5.73 billion in the first quarter of 2026.

1) ADBE Sinks as CEO Narayen to Depart

Adobe (NASDAQ:ADBE) fell almost 8% ahead of the market open after CEO Shantanu Narayen announced, as part of the broader quarterly results, that he will step down. Revenue and earnings beat estimates, with annualized revenue from artificial intelligence (AI)-first products more than tripling.

"I want to recognize Shantanu's contributions as CEO and…for positioning Adobe for success in the AI-driven era": Frank Calderino, the lead independent director, stated Narayen will stay on until after a successor has been appointed, with the process likely to take several months.
"That should be our next billion-dollar business": Narayen pointed to the AI-first product set as being a key profit driver. The Stock Advisor recommendation by Team Rule Breakers also reported a 17% increase in the number of monthly users across products, including Acrobat and Firefly.

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2) Ulta Disappoints on Cautious Outlook

Ulta Beauty (NASDAQ:ULTA) dropped close to 9% as the SA rec by Team Hidden Gems posted mixed results, with earnings negatively impacted by higher investments and costs. Full-year revenue is now expected to grow by only 6% to 7%.

"We are increasingly mindful of rising global conflicts that could impact economic conditions": CEO Kecia Steelman expressed concern about consumer sentiment taking a hit, as the company has to deal with cost-conscious clients alongside elevated competition.
Brand loyalty program grew by 5% to a record 46.7 million active members: Part of the driver behind the 5.4% comparable sales growth came from reactivated members and strong retention of existing members. The market share gains generated should act as a buffer to consumer sentiment changes.

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3) Report: Meta Taps Alphabet for AI

The New York Times reports Meta (NASDAQ:META) has pushed back the launch of its new AI model, Avocado, until at least May due to struggling to meet performance expectations relative to competitors, including Gemini from Alphabet (NASDAQ:GOOG).

Possibility discussed to temporarily license Gemini models: As the company continues to work on its own models, discussion has turned to tapping into third-party products, following in the footsteps of Apple (NASDAQ:AAPL), which will use Gemini to power the revamped Siri later this year.
"Meta's future has arguably never looked brighter": Fool contributing analyst Keith Noonan argued last month that "Meta continues to make huge bets on AI through data-center buildouts and other projects, but the company's strong growth and stellar margins help support a bullish vision for the future."

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4) Your Take

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