Latest news with #ADBE
Yahoo
a day ago
- Business
- Yahoo
Bernstein Hikes Adobe (ADBE) Price Target to $530 on AI Prospects
Adobe Inc. (NASDAQ:ADBE) is one of the 11 must-buy AI stocks analysts are betting on. On June 16, Bernstein SocGen Group reiterated an 'Outperform' rating on the stock and hiked the price target to $530 from $525. Copyright: photogearch / 123RF Stock Photo Bernstein SocGen Group remains bullish about Adobe's outlook owing to its potential to deliver 10% revenue growth in the near term. The firm also touted the company's improving margins and significant stock buybacks, which are expected to trigger mid-teens earnings per share growth. In addition, the research firm expects the company to benefit from the acceleration of artificial intelligence. According to Bernstein, Adobe has evolved from a 'show me a story' to an 'explain to me and show me a story.' Consequently, it views the company as an AI winner in the enterprise. Nevertheless, the research firm remains cautious, awaiting clarity on its AI monetization strategy and go-to-market initiatives. Adobe Inc. (NASDAQ:ADBE) is a global technology company operating across Digital Media, Digital Experience, and Publishing & Advertising. Its Creative Cloud offers tools for content creation, while Document Cloud supports digital workflows. While we acknowledge the potential of ADBE as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 12 Best Healthcare Stocks to Buy Now and 10 Stocks Analysts Are Upgrading Today. Disclosure: None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
3 days ago
- Business
- Yahoo
2 Option Ideas to Consider this Wednesday for Bearish Traders
Today, we are using some moving average filters to find bullish stocks and then looking at a couple of different trade ideas. First the stock scanner: How to Use Barchart's Tools to Create My Favorite Low-Risk, High-Reward Options Trades Chewy Stock Is Off its Highs After Earnings - Time to Buy CHWY? Options Volume Surges for Molson Coors (TAP) as Statistical Sentiment Shifts Get exclusive insights with the FREE Barchart Brief newsletter. Subscribe now for quick, incisive midday market analysis you won't find anywhere else. Which produces these results: Now that we have some bullish stock candidates, let's analyze three different option ideas. Adobe Bear Call Spread The first trade we will look at is a Bear Call Spread on Adobe (ADBE). First, let's run our Bear Call screener for Adobe: Let's evaluate the first ADBE bear call spread example. Selling the July 18 call with a strike price of $405 and buying the $415 call would create a Bear Call spread. This spread was trading for around $1.67 yesterday. That means a trader selling this spread would receive $167 in option premium and would have a maximum risk of $833. That represents a 20.05% return on risk between now and July 18 if ADBE stock remains below $405. If Adobe closes above $415 on the expiration date the trade loses the full $833. The breakeven point for the Bear Call spread is $406.67 which is calculated as $405 plus the $1.67 option premium per contract. Merck Bear Put Spread A bear put spread is a vertical spread that aims to profit from a stock declining in price. It has a bearish directional bias as hinted in the name. Unlike the bear call spread, it suffers from time decay so traders need to be correct on the direction of the underlying and also the timing. A bear put spread is created through buying an out-of-the-money put and selling a further out-of-the-money put. The maximum profit is equal to the distance between the strikes, less the premium paid. The loss is limited to the premium paid. Running the bear call spread screener shows these results for Merck (MRK): Let's use the first line item as an example. Using the August 15 expiry, this trade involves buying the $90 put and selling the $65 put. The price for the trade is $11.66 which means the trader would pay $1,166 to enter the trade. This is also the maximum loss. The maximum gain be calculated by taking the width between the strikes and subtracting the premium paid: 25 – 11.66 x 100 = $1,334. The breakeven price for the trade is equal to the long put strike, less the premium. In this case, that gives us a breakeven price of $78.34. The profit probability is 50.2%, although this is just an estimate. Conclusion There you have two different bearish trade ideas on two different stocks. Remember to always manage risk and have stop losses in place. Please remember that options are risky, and investors can lose 100% of their investment. This article is for education purposes only and not a trade recommendation. Remember to always do your own due diligence and consult your financial advisor before making any investment decisions. On the date of publication, Gavin McMaster did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
5 days ago
- Business
- Yahoo
Wall Street Analysts See Adobe (ADBE) as a Buy: Should You Invest?
The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price. Do they really matter, though? Let's take a look at what these Wall Street heavyweights have to say about Adobe Systems (ADBE) before we discuss the reliability of brokerage recommendations and how to use them to your advantage. Adobe currently has an average brokerage recommendation (ABR) of 1.74, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 34 brokerage firms. An ABR of 1.74 approximates between Strong Buy and Buy. Of the 34 recommendations that derive the current ABR, 21 are Strong Buy and two are Buy. Strong Buy and Buy respectively account for 61.8% and 5.9% of all recommendations. Check price target & stock forecast for Adobe here>>> While the ABR calls for buying Adobe, it may not be wise to make an investment decision solely based on this information. Several studies have shown limited to no success of brokerage recommendations in guiding investors to pick stocks with the best price increase potential. Do you wonder why? As a result of the vested interest of brokerage firms in a stock they cover, their analysts tend to rate it with a strong positive bias. According to our research, brokerage firms assign five "Strong Buy" recommendations for every "Strong Sell" recommendation. This means that the interests of these institutions are not always aligned with those of retail investors, giving little insight into the direction of a stock's future price movement. It would therefore be best to use this information to validate your own analysis or a tool that has proven to be highly effective at predicting stock price movements. With an impressive externally audited track record, our proprietary stock rating tool, the Zacks Rank, which classifies stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), is a reliable indicator of a stock's near-term price performance. So, validating the Zacks Rank with ABR could go a long way in making a profitable investment decision. Although both Zacks Rank and ABR are displayed in a range of 1--5, they are different measures altogether. Broker recommendations are the sole basis for calculating the ABR, which is typically displayed in decimals (such as 1.28). The Zacks Rank, on the other hand, is a quantitative model designed to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5. Analysts employed by brokerage firms have been and continue to be overly optimistic with their recommendations. Since the ratings issued by these analysts are more favorable than their research would support because of the vested interest of their employers, they mislead investors far more often than they guide. On the other hand, earnings estimate revisions are at the core of the Zacks Rank. And empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. Furthermore, the different grades of the Zacks Rank are applied proportionately across all stocks for which brokerage analysts provide earnings estimates for the current year. In other words, at all times, this tool maintains a balance among the five ranks it assigns. Another key difference between the ABR and Zacks Rank is freshness. The ABR is not necessarily up-to-date when you look at it. But, since brokerage analysts keep revising their earnings estimates to account for a company's changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in indicating future price movements. In terms of earnings estimate revisions for Adobe, the Zacks Consensus Estimate for the current year has remained unchanged over the past month at $20.36. Analysts' steady views regarding the company's earnings prospects, as indicated by an unchanged consensus estimate, could be a legitimate reason for the stock to perform in line with the broader market in the near term. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Adobe. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> It may therefore be prudent to be a little cautious with the Buy-equivalent ABR for Adobe. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Adobe Inc. (ADBE) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
14-06-2025
- Business
- Yahoo
Adobe, Uber and Dick's, CoreWeave-Google: Trending Tickers
Creative software giant Adobe (ADBE) will report its fiscal second quarter earnings results after Thursday's market close. Dick's Sporting Goods (DKS) is joining the ranks of retailers and stores accessible for on-demand delivery through Uber Eats (UBER). CoreWeave (CRWV) will provide computing capacity to Alphabet's Google Cloud business (GOOG, GOOGL), according to Reuters, who will in turn sell that capacity to OpenAI. To watch more expert insights and analysis on the latest market action, check out more Catalysts here. It's now time for some of today's trending tickers. We are watching Adobe, Uber, and Dick's Sporting Goods, and Coreweave. First up, Adobe set to report second quarter results after the close. Second quarter revenue guidance came in slightly below Wall Street expectations when the company last reported here. You're taking a look at shares of ADBE. They are flat here during today's trading session. There have been a lot of things that we've been tracking within Adobe, and especially with regard to how quickly they're able to implement some of those AI features within their existing platforms for creatives out there that are buying into a lot of the subscriptions and the plans that Adobe has been able to put into market for years to come and how much of a delta there is between those user experiences as well at the end of the day. Yeah, I think this space, there's a lot of competition here, and uh, I think Adobe, the stock has struggled quite a bit. So, we would be cautious with this name. And again, this goes back to our theme of trying to be broad and sticking with, uh, having a breadth in the portfolio to protect you on the downside. You know, as I'm taking a look at some of the areas specifically within the segments that investors are going to be looking across when this company does report earnings, it's expected that they'll report digital media segment revenue of about $17.3 billion far and away, the major leader on a segment basis here, but you've also got the digital experience which includes the cloud subscriptions and other digital experiences. Uh, but the cloud subscriptions essentially coming in at $5.1 billion is what they're looking for here of that overall $5.8 billion pie for the digital experience side. So, ultimately, we'll see exactly where those numbers come in at, but it still is a larger question for some of their bigger corporate clients, what's the deal scrutiny and what that pipeline looks like for some of the seats that sit underneath of these services as well here, it seems. Sure. Yeah, and with businesses scaling back a little bit because of the uncertainty, I think that could affect the company as well. So, those are all things to watch in the earnings report. Next up here, we're also tracking Uber and Dick's Sporting Goods announcing a partnership bringing the retailers products to the Uber Eats platform. Consumers can now order equipment, apparel, and more for on-demand delivery through the app. You're taking a look at shares of both of these companies here, and they are moving fractionally lower as we are seeing with the broader markets. I saw this this morning, and it immediately said to me, you know what, this is not bad. Imagine you're at the beach one day. You're with your friends and hey, yo, we forgot the ball. Like we can't do the activity that we were hoping to and so now we can perhaps through Uber Eats, both, you know, get a pizza delivered to the beach as well as whatever softball or baseball or you know, I don't know. People are not playing pickleball at the beach these days, not yet, but they'll figure out a way. Um, you know, a sand wedge, perhaps, if you're going to be practicing on the beach, just don't hit anybody with that golf ball. Get the foam balls. But we look at all the ways that Uber Eats has tried to really entrench itself, how is this fitting into the overall kind of super appification, if you will, of Uber's strategy from your perspective? I think they have done a phenomenal job, right? With where they've they've got a very diversified business mix. It went from this hyper growth company into a very diversified company that's that's a core company right now to look at. Uh, they're firing on all cylinders, you know, they've got this Uber delivery. I think this partnership is phenomenal. I agree with you. Uh, they've got the subscription business with the advertising, they've got the autonomous vehicle, they've got the ride sharing. I think Uber Eats, I use it all the time, you know, so I think I think this is this is very positive. Yeah. Big time for Dick's Sporting Goods too, especially coming off of the announcement of the acquisition that's going to be moving forward with Foot Locker here. So, maybe I don't know. Some of those shoe boxes that would usually be coming straight from Dick's Sporting Goods might also be coming from Foot Locker via an Uber Eats delivery. We will see how that plays out indeed. Finally here, we want to talk about one more name that we're tracking. This one is Coreweave, one of these recent IPOs of course set to provide computing capacity to Google's cloud unit. This, according to a report from Reuters. Google will then sell that computing capacity to OpenAI as part of its newly signed partnership enhancing OpenAI's computing power here. This for Coreweave has been one that has been absolutely off into the races for investors that are trying to get some type of exposure into the IPO markets that and the IPO market, those companies that are making their public debutes and clearly have a solid business model at least. How is this kind of setting the tone for what we're also going to hear a little bit more about today with chime's IPO and the broader landscape for public debutes right now? Yeah, I think I think the appetite is going to eventually what what's happening right now is that there's still a lot of uncertainty, but slowly we are seeing some of this appetite come back. Yeah. And we saw the inflation data, and if the inflation data continues to be to show that inflation is falling, and we start getting rate cuts after the summer, I think we should start to see the IPO market pick up more. And that's part of the reasons why we think that some of the financials will do well because not only because of deregulation, but also because of investment banking activity as well, and IPO activity picking up. Absolutely. You can scan the QR code below to track the best and worst performing stocks of the session with Yahoo Finance's Trending Tickers page.
Yahoo
13-06-2025
- Business
- Yahoo
ADBE Q2 Earnings Call: AI Adoption and Product Expansion Drive Upbeat Outlook
Creative software maker Adobe (NASDAQ:ADBE) beat Wall Street's revenue expectations in Q2 CY2025, with sales up 10.6% year on year to $5.87 billion. Guidance for next quarter's revenue was better than expected at $5.9 billion at the midpoint, 0.7% above analysts' estimates. Its non-GAAP profit of $5.06 per share was 1.7% above analysts' consensus estimates. Is now the time to buy ADBE? Find out in our full research report (it's free). Revenue: $5.87 billion vs analyst estimates of $5.79 billion (10.6% year-on-year growth, 1.5% beat) Adjusted EPS: $5.06 vs analyst estimates of $4.97 (1.7% beat) The company slightly lifted its revenue guidance for the full year to $23.55 billion at the midpoint from $23.43 billion Management raised its full-year Adjusted EPS guidance to $20.60 at the midpoint, a 1.2% increase Operating Margin: 35.9%, in line with the same quarter last year Billings: $5.72 billion at quarter end, up 17% year on year Market Capitalization: $176.3 billion Adobe's second quarter results were driven by broad-based demand across its creative and digital document solutions, with management highlighting rapid adoption of generative AI features and the integration of productivity tools. CEO Shantanu Narayen attributed performance to expanding use cases among business professionals and consumers, noting that monthly active users across Acrobat, Express, and Creative Cloud applications now exceed 700 million. President of Digital Media David Wadhwani emphasized the growing intersection of creativity and productivity, stating, 'The combination of Acrobat and Express can help anyone move from consumption to creation faster with more impactful content than ever before.' Management also pointed to accelerating adoption of AI-powered tools like Acrobat AI Assistant and Firefly, citing their role in driving user engagement and new customer acquisition. Looking ahead, Adobe's updated guidance reflects expectations for continued growth fueled by new AI capabilities and expanded product offerings. Management identified deeper integration of AI across its portfolio as a key driver, with Narayen stating, 'Our strategy is to bring productivity and creativity to life for billions of users across a variety of surfaces.' The company plans to roll out expanded Firefly app subscriptions and Creative Cloud Pro globally, aiming to capture both individual creators and enterprise clients. CFO Dan Durn noted the opportunity for ongoing revenue acceleration through the rollout of higher-value subscription tiers and broader customer adoption of automation services, while also acknowledging that some benefits will take time to materialize as new offerings are gradually introduced across regions and customer segments. Management attributed the quarter's growth to strong adoption of generative AI features, expanding product integrations, and growing enterprise demand for creative and marketing solutions. AI-fueled user engagement: The integration of generative AI across Acrobat, Express, and Firefly led to accelerating monthly active user growth, with Acrobat AI Assistant and generative features driving a 3x increase in adoption year over year. Firefly app momentum: The Firefly app, Adobe's creative AI platform, saw a 30% quarter-over-quarter increase in traffic and doubled paid subscriptions. Management highlighted its role in attracting new users and expanding use cases across media types. Enterprise content supply chain demand: Adobe's GenStudio and Firefly services are being adopted by large enterprises to automate and scale content creation, with management noting that major brands like The Coca-Cola Company are leveraging these tools for faster, on-brand output. Expansion in partner ecosystem: The company broadened support for third-party AI models within Firefly and deepened integrations with advertising and marketing platforms, aiming to position Adobe as the central hub for creative content supply chains. Subscription model enhancements: New tiered pricing for Firefly and Creative Cloud Pro, along with deeper product integration, are designed to drive both new customer acquisition and increased average revenue per user over time. Management indicated that some benefits from these changes will phase in gradually as subscriptions renew and new products are launched regionally. Adobe's outlook is anchored in continued AI adoption, broader product rollout, and increased enterprise demand for creative automation. Global AI product expansion: Management expects further growth from rolling out Firefly app subscriptions and Creative Cloud Pro globally, targeting both individuals and enterprises. Expanded features and integration of AI are anticipated to drive higher user engagement and recurring revenue. Enterprise automation uptake: Adobe's GenStudio and Firefly services are gaining traction among large organizations seeking to automate creative workflows. Management highlighted early customer wins and ongoing enterprise pilots, stating that these solutions could increase the company's share of enterprise marketing budgets. Phased impact from pricing and renewals: The financial benefit from new pricing tiers and product bundles is expected to materialize gradually, as upgrades and renewals occur over time. CFO Dan Durn cautioned that while early feedback is positive, the full revenue impact depends on adoption rates and timing of customer renewals across regions. In the coming quarters, the StockStory team will monitor (1) the pace of global rollout for new Firefly and Creative Cloud Pro offerings, (2) enterprise adoption and upsell of GenStudio and Firefly automation services, and (3) user engagement trends across AI-powered features within Acrobat and Express. Progress in integrating third-party AI models and forming new marketing platform partnerships will also be key indicators of Adobe's ability to sustain growth. Adobe currently trades at a forward price-to-sales ratio of 7.2×. In the wake of earnings, is it a buy or sell? Find out in our full research report (it's free). The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today. Sign in to access your portfolio
