Why Are These Stocks Trending Today?

Software maker Adobe Systems Incorporated (NASDAQ:ADBE) shares are up by 3% in morning trading after the company beat earnings estimates and reported in-line revenue numbers. For its fourth fiscal quarter, Adobe Systems Incorporated (NASDAQ:ADBE) reported EPS of $0.62 per share on revenue of $1.31 billion, exceeding earnings estimates by $0.02 per share. For the full fiscal year Adobe reported non-GAAP diluted earnings per share of $2.08 on revenue of $4.8 billion. The company also repurchased 8.1 million shares. First-quarter guidance includes EPS in the range of $0.56 to $0.62 and sales between $1.3 billion and $1.35 billion, within the analyst estimates of $0.62 on revenue of $1.33 billion. Jeffrey Ubben’s ValueAct Capital and Stephen Mandel’s Lone Pine Capital are both long Adobe.

Last but not least, United Development Funding IV (NASDAQ:UDF) shares are down another 25.6% following a post alleging that the company was a Ponzi scheme. The bearish article noted, among other things, that United Development Funding IV (NASDAQ:UDF)’s previous auditor declined to continue being the company’s auditor last month. There are many rumors circulating the Street regarding the authors of the report, with some sources attributing the reports to Kyle Bass of Hayman Advisors, who is also believed to have a short bet against United Development Funding IV. The company said in a statement issued earlier today:

“United Development Funding III and United Development Funding IV are aware that a hedge fund has created a significant short position in United Development Funding IV shares (NASDAQ:UDF). We believe that this hedge fund is trying to unlawfully profit by manipulating and depressing the price of United Development Funding IV shares.”

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