Don’t acquisitions usually have a positive market reaction TC 200
Typically for the acquisition target but not for the acquirer
They paid 50x next years annual revenue which is probably not a good deal for a tech company in the current market conditions. Most public high growth companies are trading at 10x ARR. So the market believes Adobe overpaid.
Long term they’ll be positive but short term is pain
M&A always bring stock down for buyer and up for the one being bought
Dude i studied finance. I know what I'm talking about. In this case it was badly beat because the premium for figma was too high. But even if it wasn't, the stock would still have fallen. This the most basic thing you should know about M&A
Because adobe paid ridiculously high premium for figma.
Analysts believed they overpaid, which is the primary reason
Ligma
50x for Figma???
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Paid in cash probably?