Adobe Inc

Adobe Inc. (NASAQ: ADBE) is a global technology company. The Company's products, services and solutions are used around the world to imagine, create, manage, deliver, measure, optimize and engage with content across surfaces and fuel digital experiences. Its segments include digital media, digital experience, and publishing and advertising.

Recent Business and Financial Updates

• Adobe to Release Q2 FY2024 Earnings Results: Adobe (Nasdaq: ADBE) has announced that it will disclose its second quarter fiscal year 2024 earnings results after the market closes on Thursday, June 13, 2024. This announcement will be followed by a conference call with investors, scheduled from 2:00 to 3:00 p.m. Pacific Time, which will be streamed live on the Adobe Investor Relations Site. After the call, a recording and related materials will be accessible on the same site.
• First Quarter Fiscal Year 2024 Financial Highlights: Adobe reported a revenue of USD 5.18 billion for the first quarter of fiscal year 2024, marking an 11 percent year-over-year increase, or 12 percent in constant currency. The diluted earnings per share were USD 1.36 on a GAAP basis and USD 4.48 on a non-GAAP basis. The GAAP operating income was USD 907 million, while the non-GAAP operating income was USD 2.47 billion. Adobe's GAAP net income stood at USD 620 million, with a non-GAAP net income of USD 2.05 billion. The cash flows from operations totaled USD 1.17 billion. At the end of the quarter, the Remaining Performance Obligations (RPO) were valued at USD 17.58 billion. Additionally, Adobe repurchased approximately 3.1 million shares during this period.
• First Quarter Fiscal Year 2024 Business Segment Highlights: In the Digital Media segment, Adobe achieved a revenue of USD 3.82 billion, reflecting a 12 percent year-over-year growth, or 13 percent in constant currency. Creative revenue increased to USD 3.07 billion, representing an 11 percent year-over-year growth, or 12 percent in constant currency. Document Cloud revenue rose to USD 750 million, indicating an 18 percent year-over-year growth, both as reported and in constant currency. The net new Digital Media Annualized Recurring Revenue (ARR) was USD 432 million, concluding the quarter with a Digital Media ARR of USD 15.76 billion. The Creative ARR increased to USD 12.78 billion, and the Document Cloud ARR grew to USD 2.98 billion. The Digital Experience segment reported a revenue of USD 1.29 billion, showing a 10 percent year-over-year growth, both as reported and in constant currency. The Digital Experience subscription revenue was USD 1.16 billion, representing a 12 percent year-over-year growth, both as reported and in constant currency.

Technical Observation (on the daily chart):

The Relative Strength Index (RSI) over a 14-day period stands upward trending with value of 46.99, with expectations of a consolidation or an upward momentum. Additionally, the stock's current positioning is below both the 50-period SMA and 200-period SMA, which may serve as dynamic short to medium-term resistance levels.

As per the above-mentioned price action, recent key business and financial updates, momentum in the stock over the last month, and technical indicators analysis, a ‘Buy’ rating has been given to Adobe Inc. (NASAQ: ADBE) at the current market price of USD 466.66 as of June 06, 2024, at 08:50 am PDT.

Individuals can evaluate the stock based on the support and resistance levels provided in the report in case of keen interest taking into consideration the risk-reward scenario.

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.

Related Risk: This report may be looked at from a high-risk perspective and a recommendation is provided for a short duration. This report is solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc.

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance level is June 06, 2024. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: Target Price refers to a price level that the stock is expected to reach as per the relative valuation method and or technical analysis taking into consideration both short-term and long-term scenarios.

Note 5: ‘Kalkine reports are prepared based on the stock prices captured either from the New York Stock Exchange (NYSE), NASDAQ Capital Markets (NASDAQ), and or REFINITIV. Typically, all sources (NYSE, NASDAQ, or REFINITIV) may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.