Trading Adobe After Fiscal Q1 2024 Performance

March 20, 2024 02:56

Adobe is a multinational software company whose products include Adobe Acrobat, Experience Cloud, Photoshop, Lightroom, Illustrator and its new AI Sensei, among others.   

The tech company just announced its fiscal first-quarter 2024 earnings report. Learn more about Adobe’s performance and what analysts are forecasting for the stock below.

Stock: Adobe Inc
Symbol for Invest.MT5 Account: Adobe
Date of Idea: 19 March 2024
Time Line: 1 - 6 months
Entry Level: $580.00
Target Level: $700.00
Position Size for Invest.MT5 Account: Max 5%
Risk: High
  • The Invest.MT5 account allows you to buy real stocks and shares from 15 of the largest stock exchanges in the world.

All trading is high risk and you can lose more than you risk on a trade. Never invest more than you can afford to lose, as some trades will lose and some trades will win. Start small to understand your own risk tolerance levels or practice on a demo account first to build your knowledge before investing. 

Adobe Fiscal Q1 2024 Performance

Here are some of the key highlights from the latest fiscal first-quarter 2024 earnings report from Adobe: 

  • Earnings per share of $4.48 vs $4.38 expected 
  • Revenue of $5.18 billion vs $5.14 billion expected 
  • Revenue up 11% year over year for the quarter 
  • Net income was down to $620 million vs $1.36 billion same quarter last year 
  • Announced $25 billion share repurchase program 
  • $1 billion termination fee to abandon $20 billion acquisition of Figma 
  • Launching an early version of an artificial intelligence assistant for its Reader and Acrobat apps 

Adobe beat analyst expectations on both earnings and revenue. Breaking down the numbers, its Digital Media segment revenue grew 12% year over year to $3.82 billion. Its Creative revenue grew to $3.07 billion while its Document Cloud revenue was up 18% year over year.  

Investors will be keen to see if its new artificial intelligence assistant can help to increase revenue and maintain its subscriber numbers. President of Adobe's digital media business stated in the earnings call that its product enhancements in the Adobe Express app, new Acrobat assistant and Firefly Services AI product "should lead to an acceleration in digital media revenue." 

But while the earnings report and call were largely positive, the stock sank 12%. Adobe also announced a lower net income compared to the same time last year and a $1 billion termination fee from its proposed $20 billion acquisition of Figma. The fall in its stock price was largely attributed to a weaker fiscal second-quarter guidance and that the management team avoided providing a full-year forecast.  

The weaker guidance came from the fact its management team said the AI-fuelled boom in the stock market is likely to fade bringing valuations and expectations in line with historical standards. It is one reason that analyst ratings for Adobe's stock price are mixed, as shown below.

Adobe Stock Forecast - What do the Analysts Say?

According to analysts polled by TipRanks for an Adobe stock forecast in the past 3 months, there are currently 21 buy, 6 hold and 2 sell ratings on the stock. The highest price level for a Adobe stock forecast is $700.00 with the lowest price target at $465.00. 

The average price target for a Adobe stock forecast is $623.37.

Source: TipRanks, 19 March 2024


An Example Trading Idea for the Adobe Stock Price

An example trading idea for the Adobe share price could be as follows:  

  • Buy the stock on a break above $580.00 to allow for volatility. 
  • Target just below the highest analyst price target of $700.00. 
  • Keep your risk small at a maximum of 5% of your total account.   
  • Time Line = 1 – 6 months  
  • If you buy 10 Adobe shares:  
    • If target is reached = $1,200.00 potential profit [($700.00 - $580.00) * 10 shares].

Remember that markets go up and down and it is unlikely the share price will move up in a straight line. In fact, it may even go much further down before it rises, especially considering the 12% drop in its share price after the earnings announcement.

Be sure to exercise good risk management and always know how much you could potentially lose on a trade and the risks involved, as well as the costs.

With the Admirals Invest.MT5 account you can buy and sell US stocks with a commission from $0.02 per share. This means buying 10 shares in Adobe stock would result in a commission of $0.20 ($0.02 * 10 shares) for executing a per-side transaction.

There is a low minimum transaction fee of $1. So, the example trading idea above would result in a commission of just $1 overall! 

How to Buy Adobe Stock in 4 Steps  

With Admirals, you can buy shares with a low commission of just $0.02 per share and a low minimum commission of just $1 on US stocks. 

  1. Open an account with Admirals to access the dashboard.   
  2. Click on Trade on one of your live or demo accounts to open the web platform.   
  3. Search for your stock in the search window at the top right to view the live price chart. 
  4. Click Create New Order from the bottom of the screen to open the trading ticket. 
Source: Admirals MetaTrader 5. Adobe. Monthly. Date: January 2017 to March 2024, captured on 19 March 2024. Past performance is not a reliable indicator of future results or future performance.


Click on the banner below to trade Adobe stock today ▼▼▼ 

Do You See the Adobe Stock Price Moving Differently?   

Remember that all analytics and trading ideas are based on the personal view and experience of the author.

If you believe there is a higher chance Adobe share price will move lower, then you can also trade short from a CFD (Contracts for Difference) trading account which Admirals also provide.

The Trade.MT5 and Trade.MT4 account allows you to speculate on the price direction of stocks and shares using CFDs.

This means you can trade long and short to potentially profit from rising and falling stock prices.


The given data provides additional information regarding all analysis, estimates, prognosis, forecasts, market reviews, weekly outlooks or other similar assessments or information (hereinafter “Analysis”) published on the websites of Admirals’ investment firms operating under the Admirals trademark (hereinafter “Admirals”) Before making any investment decisions please pay close attention to the following:   

  • This is a marketing communication. The content is published for informative purposes only and is in no way to be construed as investment advice or recommendation. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and that it is not subject to any prohibition on dealing ahead of the dissemination of investment research.    
  • Any investment decision is made by each client alone whereas Admirals shall not be responsible for any loss or damage arising from any such decision, whether or not based on the content. 
  • With a view to protecting the interests of our clients and the objectivity of the Analysis, Admirals has established relevant internal procedures for the prevention and management of conflicts of interest. 
  • The Analysis is prepared by an independent analyst, Jitanchandra Solanki (analyst), (hereinafter “Author”) based on their personal estimations.    
  • Whilst every reasonable effort is taken to ensure that all sources of the content are reliable and that all information is presented, as much as possible, in an understandable, timely, precise and complete manner, Admirals does not guarantee the accuracy or completeness of any information contained within the Analysis.    
  • Any kind of past or modelled performance of financial instruments indicated within the content should not be construed as an express or implied promise, guarantee or implication by Admirals for any future performance. The value of the financial instrument may both increase and decrease and the preservation of the asset value is not guaranteed. 
  • Leveraged products (including contracts for difference) are speculative in nature and may result in losses or profit. Before you start trading, please ensure that you fully understand the risks involved. 
Jitanchandra Solanki
Jitanchandra Solanki Financial Markets Author, Admirals London

Jitanchandra is a financial markets author with more than 15 years experience trading currencies, indices and US equities. He is an accredited Market Technician with a BA Hons degree.