Adobe shares preview: price could climb higher amid sunny Q2 earnings
The Adobe share price has continued to climb this week and could hit an all-time high ahead of its Q2 earnings, due to be released on 17 June. Analysts are hopeful that a positive report will spur on already climbing Adobe shares.
- The Adobe share price has risen 8% in the past week
- Adobe shares hit $555.00 when markets opened on 15 June
- Q2 earnings report will be released on 17 June
- Report is expected to show YOY profits of $3.73 billion
- Ready to trade the Adobe share price? Open an account today
Why the excitement over the Adobe share price?
The US software developer and Silicon Valley titan Adobe has seen its share price climb steadily this week ahead of the release of its 2021 Q2 earnings report, due to be published on 17 June. The report is expected to reveal that Adobe revenue has grown by 19% YOY, totalling $3.73 billion and thus signifying one of the best years ever for the company.
Adobe has been buoyed by Covid-19 pandemic-era success and the WFH boom, which has seen demand for its suite of office and design products soar. The result is that the Adobe share price could very well reach its highest level ever, with Morgan Stanley predicting shares to hit $575, with a potential high of $698 before the end of 2021 - overtaking the peak near last year's Q3 results by some considerable amount.
A good year ahead for Adobe shares?
While Adobe has gone from strength to strength over the past 12 months, the long-term prospects for the Adobe share price are not guaranteed to be positive. For one, the key source of demand for Adobe products, the work-from-home boom, appears to be coming to an end in core markets such as North America and Western Europe.
In addition, a number of hedge funds have actually been selling Adobe shares in recent weeks, with a lower number of top-tier funds holding Adobe positions than at any other point this year so far. Adobe is also one of the most expensive major tech stocks on the market right now, priced at considerably higher levels than Apple or Microsoft. Whether this means that Adobe stock is overpriced remains to be seen.
Trade Adobe shares today
Take your position on US shares for just a small initial deposit with CFDs.
Whether you trade or invest, you’ll get access to pre-market and after-hours trading on 70 US stocks.
Open an account to get started.
IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.
The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.
Please see important Research Disclaimer.
Seize a share opportunity today
Go long or short on thousands of international stocks.
- Increase your market exposure with leverage
- Get spreads from just 0.1% on major global shares
- Trade CFDs straight into order books with direct market access
Live prices on most popular markets
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.