Adobe Systems Stock Price | ADBE Shares Chart

Adobe Systems Stock Price | ADBE Shares Chart | US00724F1012Central Index Key (CIK): 0000796343 | ISIN: US00724F1012 | Symbol: ADBE | Type: Stock.
One of the most successful and largest specialized software companies in the world, Adobe Systems, is well known to people whose professional activities are directly or indirectly related to photography, design and cinematography. More recently, the tech giant has also been offering user-friendly e-commerce solutions, which have skyrocketed in importance amid the pandemic. Business diversification has a positive effect on Adobe stock, making it a good choice for both seasoned investors and newcomers to the stock market. Adobe (NASDAQ:ADBE) stock price online, charts, stock price history, technical and fundamental analysis, reports, dividends, comments and more.


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Technical Analysis Adobe Systems Stock


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Fundamental Analysis Adobe Systems Stock


The widget displays fundamental data that will help you better understand the current state of the company than simple stock prices. Adobe Systems stock fundamentals include: Market Capitalization, Enterprise Value, Balance Sheet, Operating Metrics, Price History, Margins, Income Statement, Dividends and many others important data.



A Brief History of Adobe Systems Stocks from Simple-Invest

Like most of the US tech giants, the company was founded in California. John Warnock and Charles Geschke, who worked together at Xerox PARC, decided to quit in order to independently develop a page description language for printers called PostScript. Initially, Adobe was created for this purpose. The first office was Warnock's garage.

Steve Jobs became interested in the development and expressed a desire to acquire the company for $ 5 million. The partners rejected the offer and offered to invest in the firm by purchasing shares. As a result, Adobe received $ 2.5 million and released a version of the PostScript controller adapted for Apple's current printers. The success of the deal attracted the attention of other manufacturers, which soon made Postscript the international standard for computer printing.

The flagship product was Photoshop, the first version of which was released in 1989. Four years later, PDF, Acrobat and Reader were introduced.

Later on, a series of successful acquisitions took place. The most significant was the purchase of a competitor, Macromedia.

In 2013, the company was caught in a major scandal related to a significant data breach of cloud service customers. The leak also affected some of the software source codes. A security breach affected about 150 million users worldwide. About 40 million more customers faced a subsequent attack on bank cards that were used to sign up.

In 2021, Adobe Systems continued to break records for revenue and profitability growth. It managed to surpass even the most optimistic forecasts of analysts. Revenue for the first quarter of 2021 reached almost $ 4 billion, and net income increased by 36% (compared to the same period in 2020).

It amounted to $ 1.5 billion. Operating expenses also increased by 17% - to $ 2 billion. Most of the revenue traditionally comes from the Digital Media division, which showed growth of 32%. The Digital Experience direction is also developing, which brought in 24% more revenue than in 2020.

According to the company's forecasts, by the end of 2021, revenue should amount to almost 15.5 billion dollars. One share of Adobe in this case will bring investors about $ 12.

What Investors need to Know about Adobe Stocks?

Adobe is one of the companies that has demonstrated stable growth throughout its existence. This is primarily due to competent management, a sustainable business strategy and the ability to offer users relevant and popular products. The company's clients are millions of people all over the world. There are no alternative products with similar functionality. This is due to the company's very aggressive anti-competitive policy. "Adobe" offers complex solutions for specialists, which attracts investors.

The change in business strategy has brought particular success. The company decided to move from selling products through traditional retail to online sales. This solved many problems for users and for Adobe Systems itself.

The company offers the most popular set of subscription programs. Adobe Creative Cloud allows you to take full advantage of the products and additionally provides cloud storage for personal files. The launch of the platform had a positive effect on the value of the stocks.

Adobe develops the Experience Cloud segment, which offers a suite of solutions for web analytics and online marketing. Strengthening of this area came with the acquisitions of Magento Commerce for $ 1.6 billion and Marketo for $ 4.7 billion. The acquisitions strengthened their position in corporate marketing and allowed them to compete more successfully with Microsoft, Salesforce and Oracle.

Most of the revenue comes from Creative Cloud, where users predominantly prefer products such as: Photoshop, After Effects, InDesign, Premiere Pro, Dreamweaver, Illustrator.

Entering the B2B segment allowed Adobe to become more than just a creative software company. Experience Cloud paid off, with Adobe up 50% shortly after the launch of the cloud computing service.

A positive signal for investors was the news of a close collaboration between Walmart and Adobe. The company also strengthened Experience Cloud by acquiring Workfront for $ 1.5 billion.

In addition, permanent work is underway on new programs and improvement of existing ones. The company tries to pleasantly surprise users with useful features. For example, the latest version of Photoshop has smart filters.

The increase in the rate of sales had a positive effect on the value of securities. So, at the time of the announcement of the pandemic, the price of one share was $ 255. As of the end of July 2021, the growth was 142%. The value of the security reached $ 618 per share. If we start from the indicator for 12 months, then investors received an income of about 40%, or $ 179 for each purchased share.

The company has not paid dividends since 2005. Instead, free cash flow is directed to the development of strategic business areas, which makes it possible to capitalize on the stable growth of securities. In addition, the issuer encourages investors to buy back shares. With a decrease in the number of securities in free circulation, the share of each investor increases. So, in the first quarter of 2021, the company bought back about 2 million shares. In total, in 2020, the number of securities in free circulation reached 479 million.

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Comments

Technical analysis of stocks Adobe System

Watching for a break above all time highs for a bullish move.

Using Fibonacci extensions to gather future price targets.

The 1.13 fib will act as the level where we should watch for a retest of the breakpoint.

The 1.618 will act as a longer term target.

If needed, use the 1.27 to get a shorter term target.

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