CE 100 Index Gives Up 2.2% as MongoDB and Adobe Slip on Earnings

What goes up must come down — and after three straight weeks of rallies, the CE 100 wound up snapping a long streak of wins, declining 2.2% in the penultimate “full” week of trading for 2024.

All pillars lost ground.

MongoDB Slips on 4Q Guidance

Mongo DB shares sank 22.4%, leading the Enablers segment of the CE 100 2.4% to the downside.

The company reported results this past week that saw a third-quarter revenue jump of 22% to $529.4 million from a year ago when Street had expected $502 million. Company filings with the SEC revealed that subscription revenues were $512 million, up 22% from a year ago. For the current quarter, the firm expects to see revenues of $515 million to $519 million. Management noted on the conference call with analysts that in terms of its Atlas cloud database service, there may be continued deceleration in year-over-year growth in the current quarter.  The company also expects a sequential decline in non-Atlas revenue in the current quarter.

Alphabet shares gathered 8.4%, offsetting at least some of those declines. PYMNTS reported this week that congressional leaders at a House select committee hearing said Friday that TikTok should sell its app and that Apple and Google should be ready to remove TikTok from their app stores by Jan. 19 if the company does not sell it.  As noted here, Nuvei can integrate Google Pay into its cashier solution for merchants across Latin America.  The capability represents an expansion of the company’s global partnership with Google, which already makes Google Pay available through Nuvei in the United States, Europe, Asia Pacific and Australia.

Adobe Slides in the Wake of Earnings

Adobe shares lost 15.8% in the wake of its own earnings report. PYMNTS detailed that during its fiscal fourth-quarter earnings call on Wednesday, Adobe revealed plans to introduce AI video generation as a premium offering early next year. Currently in limited public beta, the video generation feature has already driven a 70% increase in Premiere Pro beta users.  Adobe reported revenue of $5.61 billion for its fourth quarter ended Nov. 29, up 11% year over year.  In the document productivity space, Adobe’s AI assistant for Acrobat has seen usage double quarter over quarter.

The Pay and Be Paid pillar of the CE 100 was broadly lower, to the tune of 2.6%.  Sezzle lost 15%, giving up some of the massive, triple-digit gains seen through the past month. Block shares declined by 6.5%.  Visa’s stock was 1.1% higher.

In Visa-related news, Visa will begin enabling faster delivery of money with Visa Direct, making funds transfer to U.S. bank accounts available within one minute. This capability will be available in April 2025.

In the Be Well group of the CE 100, which lost 4.5%, CVS Caremark saw its stock slip 10.8%.

House Judiciary Committee Republicans, including Chair Jim Jordan (R-Ohio), penned a letter requesting company documents related to independent pharmacies in an investigation into whether CVS Caremark has violated antitrust law.  The issue is whether the company should keep those pharmacies from working with hub arrangements.  The letter contends that with strong market power, “CVS Caremark can influence independent pharmacies because losing ‘in-network’ status with  one of the large PBMs can mean that an independent pharmacy can no longer afford to serve the community that relies on its services.”