Midday Fly By: Adobe CEO to step down, Meta delays ‘Avocado’ AI model launch

The major averages were lower near noon, with oil prices slipping as traders await more developments related to the war in Iran. Sentiment remains fragile after a volatile week in which markets repeatedly swung in response to headlines from the Middle East and sharp moves in crude oil.

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Meanwhile, fund flows this week show investors pulling billions of dollars out of global equity funds while moving capital into cash and short-term bond funds, signaling a shift toward defensive positioning as the geopolitical situation evolves. Volatility has also risen, with the CBOE Volatility Index climbing into the high-20s, underscoring the nervous tone across financial markets.

Get caught up quickly on the top news and calls moving stocks with these five Top Five lists.

1. STOCK NEWS:

• Adobe (ADBE) reported upbeat Q1 results, provided Q2 guidance, and announced a CEO transition
• Meta (META) is delaying the launch of is “Avocado” AI model, NY Times reports
• Amazon (AMZN) plans to move is annual Prime Day sale to June from July, Bloomberg says
• Apple (AAPL) has cut commission fees collected from its App Store in China, Reuters reports
• BuzzFeed (BZFD) shares were under pressure after it flagged a going concern

2. WALL STREET CALLS:

• KinderCare (KLC) downgraded to Underweight at Morgan Stanley and to Neutral at Baird
• NerdWallet (NRDS) downgraded to Underweight at Morgan Stanley
• Adobe (ADBE) downgraded to Equal Weight at Barclays with CEO transitioning out of role
• HSBC (NIO) to Buy on better earnings visibility
• Nutrien (NTR) upgraded to Overweight at Wells Fargo

3. AROUND THE WEB:

• BE Semiconductor (BESIY) is receiving takeover interest amid rising demand for advanced chip-packaging technology, and is working with Morgan Stanley (MS) to evaluate potential approaches, Reuters says
• Anthropic is in talks with Blackstone (BX) and other private equity firms to form a joint venture selling consulting services for integrating Claude into portfolio companies, The Information reports
• ByteDance is working with Aolani Cloud to use 500 Nvidia (NVDA) Blackwell computing systems in Malaysia, totaling around 36,000 B200 chips, in an effort to become a global AI leader, WSJ says
• Alibaba (BABA) has launched “JVS Claw,” a mobile app meant to help users install and deploy OpenClaw, an agentic AI assistant, Bloomberg reports
• Honda’s (HMC) $15.7B writedown of its EV business demonstrates a reversal of its U.S. strategy and highlights challenges to come from China, Reuters says

4. MOVERS:

• Klarna (KLAR) gains in New York after Board Chair Michael Moritz acquired 3.47M shares for $50M
• Oncology Institute (TOI) higher after B. Riley raised its price target to $8 from $6
• Hive Digital (HIVE) increases after announcing a collaboration with AMC Robotics (AMCI)
• Par Technology (PAR) falls after announcing a $225M stock offering
• Sable Offshore (SOC) lower after Bloomberg reported a court found proof of bad faith in the company’s pipeline approval

5. EARNINGS/GUIDANCE:

• Kyivstar (KYIV) reported Q4 results and provided guidance for FY26
• One Group (STKS) reported Q4 results, with EPS and revenue missing consensus
• Turtle Beach (TBCH) reported Q4 results, with CEO Cris Keirn stating that “although our fourth quarter and full-year results were below guidance… we took steps to manage costs, protect our brand position, and prepare the company for renewed growth”
• EverCommerce (EVCM) reported Q4 results and provided guidance for Q1 and FY26
• Savara (SVRA) reported Q4 results, with EPS missing consensus

INDEXES:

Near midday, the Dow was down 0.06%, or29.15, to 46,648.70, the Nasdaq was down 0.73%, or 161.81, to 22,150.17, and the S&P 500 was down 0.40%, or 26.81, to 6,645.81.