• Investing
  • Stock
  • Economy
  • Editor’s Pick
Portfolio Performance Today
Stock

Will the Adobe stock price rise or fall after earnings?

by June 8, 2025
by June 8, 2025

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 comment
0
FacebookTwitterPinterestEmail

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

EU proposes 2040 climate target with carbon credit...

July 2, 2025

Here’s why the Jumia stock price is soaring

July 2, 2025

Europe markets open: Stoxx 600 gains, led by...

July 2, 2025

Tata Steel share rallies 4%: what’s fuelling the...

July 2, 2025

6 million Qantas customers hit in one of...

July 2, 2025

Interview: Interoperability key to institutional digital asset adoption,...

July 2, 2025

European renewable energy shares rally after US Senate...

July 2, 2025

Tesla’s China sales edge up 0.8% in June;...

July 2, 2025

BBAI stock soars 21% today as AI hype...

July 1, 2025

Joby Aviation stock soars 20% after Dubai flight...

July 1, 2025

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.

Recent Posts

  • Cappagh Browne Cuts Dangerous Driving Behaviours by 95% in Just One Week with Samsara

    July 2, 2025
  • Milei’s Economic Miracle: How Argentina Slashed Inflation to 1.5%

    July 2, 2025
  • Cash, Not Control: A Global History of Basic Income

    July 2, 2025
  • EU proposes 2040 climate target with carbon credit flexibility

    July 2, 2025
  • Here’s why the Jumia stock price is soaring

    July 2, 2025
  • Europe markets open: Stoxx 600 gains, led by miners, banks; Vestas up 8.4%

    July 2, 2025

Editors’ Picks

  • 1

    Meta executives eligible for 200% salary bonus under new pay structure

    February 21, 2025
  • 2

    Walmart earnings preview: What to expect before Thursday’s opening bell

    February 20, 2025
  • 3

    New FBI leader Kash Patel tapped to run ATF as acting director

    February 23, 2025
  • 4

    Anthropic’s newly released Claude 3.7 Sonnet can ‘think’ as long as the user wants before giving an answer

    February 25, 2025
  • 5

    Nvidia’s investment in SoundHound wasn’t all that significant after all

    March 1, 2025
  • 6

    Elon Musk says federal employees must fill out productivity reports or resign

    February 23, 2025
  • 7

    Cramer reveals a sub-sector of technology that can withstand Trump tariffs

    March 1, 2025

Categories

  • Economy (1,686)
  • Editor's Pick (179)
  • Investing (185)
  • Stock (1,090)
  • About us
  • Contact us
  • Privacy Policy
  • Terms & Conditions

Copyright © 2025 Portfolioperformancetoday.com All Rights Reserved.

Portfolio Performance Today
  • Investing
  • Stock
  • Economy
  • Editor’s Pick
Portfolio Performance Today
  • Investing
  • Stock
  • Economy
  • Editor’s Pick
Copyright © 2025 Portfolioperformancetoday.com All Rights Reserved.

Read alsox

Are dividend aristocrat ETFs like NOBL and...

February 23, 2025

NVIDIA stock rebounds 2.5% on Friday as...

April 12, 2025

Indian markets close: Sensex soars 1,509 points,...

April 18, 2025