American Invest Hub
  • Politics
  • Investing
  • Business
  • Latest News

American Invest Hub

  • Politics
  • Investing
  • Business
  • Latest News
Business

Will the Adobe stock price rise or fall after earnings?

by admin June 8, 2025
June 8, 2025
Will the Adobe stock price rise or fall after earnings?

Adobe stock price has moved sideways in the past few days as investors wait for its earnings, which will shed more color on its progress on artificial intelligence. ADBE was trading at $415 on Friday, up by 25% from its lowest point this year. 

Adobe earnings ahead

Adobe, the company behind popular software like Photoshop, InDesign, and Lightroom, has underperformed its top peers in the past few years. 

Its stock is barely moved in the past five years, while the S&P 500 Index has jumped by 113% and Microsoft has soared by 150% in the same period. 

The company’s underperformance is mostly because its growth has slowed, and its investments in artificial intelligence are yet to pay off. Most notably, companies like Figma and Canva have disrupted some of its business. 

Therefore, Adobe stock price will be in the spotlight this week as it publishes its quarterly results. 

Data compiled by Yahoo Finance shows that the average revenue will be $5.8 billion, a 9.2% increase from the same period last year. In contrast, other top software companies like Microsoft and ServiceNow are growing by double digits. 

The average earnings estimate is $4.97, up from $4.48 last year. The highest estimate is that Adobe’s EPS will be $3.9. They also expect the company’s annual revenue to be about $23.4 billion, representing a 9.1% annual growth. 

While Adobe issued a weak forward guidance, there are odds that the company’s actual numbers will be better than expected. It has a long record of beating analysts estimates. 

The most recent results showed that Adobe’s revenue jumped by 10% in the first quarter to $5.71 billion. 

Its cash flow from operations rose to $2.48 billion, while the company continues repurchasing its stock. It bought 7 million shares, bringing its outstanding shares to 435 million, down from 479 million in 2021.

Share repurchases help a company boost its stock by increasing its earnings per share.

ADBE is a cheap stock

Valuation metrics show that Adobe is a fairly cheap company. It has a forward price-to-earnings ratio of 20, a few points lower than the sector median of 22. 

Its forward EV-to-EBITDA ratio of 15 is also lower than other companies in the software industry. 

The most popular way to value a SaaS company like Adobe is known as the rule-of-40, which looks at its growth and margins. In its case, it has a trailing twelve-month revenue growth of 10.5% and a net income margin of 31%, giving it a multiple of 41. 

When using free cash flow, the company has a rule-of-40 metric of 47%, making it highly undervalued. Adobe is cheap because of its slow growth and the fact that it has not succeeded in monetizing its AI tools.

Adobe stock price analysis

ADBE stock chart | Source: TradingView

The daily chart shows that the ADBE share price has bounced back in the past few months. It has moved above the upper side of the descending channel that connects the highest swing since September last year. 

The stock has also moved above the 50-day and 100-day Exponential Moving Averages (EMA). Also, the Relative Strength Index (RSI) and the MACD have pointed upwards.

Therefore, the stock will likely have a bullish breakout, with the next point to watch being at $500. However, a drop below $400 is possible, especially if its financial results come short of estimates.

The post Will the Adobe stock price rise or fall after earnings? appeared first on Invezz

0
FacebookTwitterGoogle +Pinterest
previous post
Top 3 catalysts for the Dow Jones, Nasdaq 100, and S&P 500 this week
next post
Stitch Fix stock price has soared: is it a buy before earnings?

Related Posts

He plays rich on screen but dreams of...

July 13, 2024

Long TIXT: AI Growth and Bullish Signals Point...

November 12, 2024

Why meme coins promoted on X are a...

November 26, 2024

Abercrombie & Fitch stock sits at a key...

November 3, 2024

Trump Media director accused of ‘hacking’ files in...

April 14, 2024

Boeing’s crewed Starliner flight won’t return until at...

July 27, 2024

Top catalysts for the German DAX Index this...

July 20, 2025

Live Nation stock forms a bullish pattern: could...

November 9, 2024

Blackstone stock price could dive 22% before rebounding

December 31, 2024

I’d avoid Boeing and Airbus stocks and buy...

September 23, 2024

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest News

    • How Donald Trump’s immigration crackdown may tank the labor market

      August 4, 2025
    • Trump’s tariff threat looms over India’s Russian oil deals

      August 4, 2025
    • Trump moves nuclear submarines near Russia: what triggered the move and what’s ahead

      August 3, 2025
    • BOE rate cuts offer little relief as UK households face mounting financial strain

      August 3, 2025
    • Retail investors shift focus to Europe as US valuations stretch

      August 3, 2025

    Categories

    • Business (3,612)
    • Investing (2,713)
    • Latest News (2,031)
    • Politics (1,530)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: americaninvesthub.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 americaninvesthub.com | All Rights Reserved