Published - June 12th, 2023 @4:10 PM (CET)

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Adobe's Stock Performance and Outlook
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As we move beyond the first quarter earnings season, a few tech giants, including Adobe (NASDAQ:ADBE) among them, remain noteworthy. Having broken the 400 mark, the company's stock showed significant growth last month, building on a solid base since mid-August.

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Adobe's AI Platform Firefly Amidst Market Volatility
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Investors were shaken last Wednesday as software stocks, Adobe included, took a hard hit, with the company's shares dropping by 3.4%. However, Adobe's stock rebounded, maintaining above its 10-day moving average. The company unveiled Firefly, a new AI platform enabling users to create images from text descriptions, triggering a sharp rise in shares. The momentum continued on Friday, with Wells Fargo upgrading Adobe's stock to overweight and setting a new price target of 525. In addition, Mizuho increased Adobe's target price from 375 to 450.

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Oracle's Market Performance
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Oracle (NYSE:ORCL), another tech heavyweight, has demonstrated consistent strength following its late March breakout over a 91.22 entry. Oracle's stock has been performing well, supported by the 21-day exponential moving average. The company is expected to announce its earnings after the market closes on Monday, with Zacks consensus estimates predicting an adjusted profit of $1.58 per share, a 3% increase from last year. Revenue is projected to rise by 16% to $3.74 billion, building on 18% revenue growth for three consecutive quarters.

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Adobe's Earnings Boost and Digital Media's Role
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Due to favorable earnings reports, Adobe's stock has seen an influx of buyers. On March 16, the company disclosed a 13% rise in quarterly profits and a 9% revenue increase to $4.66 billion. The Digital Media segment, including Creative Cloud, was a significant contributor with $3.4 billion in revenue, up by 9%.

Adobe's Creative Cloud was the primary revenue source in fiscal 2022, generating $11.6 billion in annual recurring revenue.

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Adobe's Expected Q2 Earnings
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The company's earnings for the quarter ending in May will be announced after the market closes on Thursday. Expectations are for an adjusted profit increase of 13% to $3.78 per share and a 9% revenue rise to $4.76 billion.

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Figma Acquisition: Adobe Under Review
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Last September, Adobe revealed plans to acquire Figma, a competitor in the digital design space, for $20 billion. However, the deal is under regulatory scrutiny, with organisations such as the U.S. Department of Justice raising antitrust concerns. 

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The information on mexem.com is for general informational purposes only. It should not be regarded as investment advice. Investing in stocks involves risk. A stock's past performance is not a reliable indicator of its future performance. Always consult a financial advisor or trusted sources before making any investment decisions. 

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