Trading Adobe After Fiscal Q3 2024 Performance

Founded in 1982, Adobe is a multinational software company known for its suite of creative tools. Adobe's products are widely used in creative industries for graphic design, web development, video production and more. Some of its most popular products include Adobe Photoshop, Illustrator, Premiere Pro, Acrobat and others.  

Learn more about Adobe's fiscal third-quarter 2024 performance and what analysts forecast for the stock.

• The Invest.MT5 account allows you to buy real stocks and shares from some 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 Q3 2024 Performance

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

• Earnings per share of $4.65 vs $4.53 expected 
• Revenue of $5.41 billion vs $5.37 billion expected 
• Forecasted earnings for the current quarter $4.66 per share vs $4.67 expected 

Adobe beat Wall Street's expectations on both earnings per share and revenue. In Adobe's biggest category - products for creating digital media - sales grew 11% year over year to $4 billion. New subscriptions also earned $550 million, above Adobe's previous guidance of $460 million.  

The software company announced a raft of products that can benefit from generative artificial intelligence for images, video and animation. However, much of the growth in most AI stocks has stalled and may already be priced into the stock price, including Adobe's. 

A major concern among investors is Adobe's forecast of earnings and revenue for the quarter which was lower than Wall Street estimates. It also announced that Digital Media subscriptions are likely to be flat in November while Wall Street analysts were expecting growth.  

This was just one contributing factor in why Adobe's share price fell on the earnings release even though it beat its headline figures. Considering the fact there are now more analysts with a hold and sell rating than in the previous quarter - as highlighted below - investors should be cautious.

Adobe Stock Forecast - What do the Analysts Say?

According to 230 analysts polled by TipRanks for an Adobe stock forecast in the past 3 months, there are currently 23 buy, 5 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 $450.00. 

The average price target for a Adobe stock forecast is $622.18.

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 move back to its pre-earnings price at $541.00. 
• 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 = $1,590.00 potential profit [($700.00 - $541.00) * 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 as there are now more hold and sell ratings on the stock by several analysts.

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.

However, 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 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 or Invest 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.
4. Input your entry, stop-loss and take profit levels in the trading ticket. 

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 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.

INFORMATION ABOUT ANALYTICAL MATERIALS: 

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.
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• The Analysis is prepared by an independent analyst Jitanchandra Solanki, Freelance Contributor (hereinafter "Author") based on personal estimations.
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