Adobe Inc. is riding the hype over generative artificial intelligence (AI). ADBE stock jumped 27.93% in 3 months. With its cloud platforms, the software company allows users to modify and customize their designs using AI. The European Union antitrust regulators are expected to clear the air on Adobe’s $20 Billion acquisition deal of Figma.
Adobe Inc. (ADBE Stock) – Financial Analysis
The creator of Photoshop asked for the EU’s approval following up on a month-old request. Adobe expects the EU competition enforcer to initiate a full-scale investigation into the Figma deal after the initial scrutiny.
The Commission has already warned that the acquisition deal threatens the competition in the market for interactive product design and whiteboard software. Britain’s competition watchdog provided Adobe a week from July 7, 2023, to address the situation to steer clear from a deeper investigation.
FARMERS & MERCHANTS TRUST Co. OF LONG BEACH hiked its position in Adobe by 4.0% in Q1 after buying 443 shares. Their current portfolio in the company is worth $4.39 Million. VELA Investment Management LLC also upped its position by 122.2% in Q1 2023; they now own 1,985 shares worth $892k. Many other institutional investors and hedge funds altered their position in Adobe Inc.
At press time, ADBE Stock is trading at $485.27 with a slight gain of 0.83%. Previous close and open were at $481.29 and $481.98, respectively. The trailing twelve-month (ttm) price-to-earnings ratio (P/E) is 46.48, indicating the stock is overvalued. At the same time, the (ttm) earnings per share (EPS) is $10.44.
With an average volume of 4.45 Million shares, the market cap is $221.186 Billion. The 52-week range is from $274.73 to $518.74, respectively, so the current price could create a new high soon. Analysts placed a 2.50 rating for moderate buy and estimated a price target of $511.19 with a 5.3% upside.
The last earnings were reported on June 15, 2023, where revenue was reported to be $4.816 Billion; it surpassed the estimated value of $4.772 Billion by 0.93%. The (ttm) revenue is $18.43 Billion, revenue per share is $39.84, and the year-over-year (YoY) quarterly revenue growth shows a jump of 9.80%.
Total cash in hand at the end of the last quarter (mrq) is $6.6 Billion, and the total debt at the same time is $4.11 Billion. The profit margin swelled by 26.34% and the operating margin by 33.64%. The net profit margin gained 0.11% in June 2023 to 26.89.
Adobe Inc. (ADBE Stock) – Candle Exploration
There has been a steep ascent in price action in May 2023, and currently, it’s oscillating in the expected range for base formation. After this, the price will have to cross immediate resistance before entering the supply zone. The upward trajectory of EMA foreshadows the rally, but the RSI value of 64.43, does not fully support the estimation.
The price might face some rejection, but it shall stay below the EMA; it can be said that until the NASDAQ: ADBE price is above the $400.00 range, the chances of an upward momentum are high. Considering the buzz surrounding artificial intelligence, the possibility of price coming down to test S1 and S2 is low.
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Source: https://www.thecoinrepublic.com/2023/07/09/adobe-inc-adbe-stock-leveraging-the-buzz-around-ai/