How to Buy Adobe Stock
Adobe Inc
Adobe Inc. operates as a diversified software company worldwide. It operates through three segments: Digital Media, Digital Experience, and Publishing and Advertising.
Adobe stock last closed at $509.65, up 2.87% from the previous day, and has decreased 7.46% in one year. It has overperformed other stocks in the Software - Infrastructure industry by 0.13 percentage points. Adobe stock is currently +17.44% from its 52-week low of $433.97, and -20.15% from its 52-week high of $638.25.
As of Oct 14, 2024, there are 440M shares of ADBE outstanding. The market cap of ADBE is $224.25B. In the past 24 hours, 3.37M ADBE shares were traded.
How to Buy Adobe Stock
Not sure how to invest in Adobe stock? Here's how.
- Choose where to buy Adobe stock: You need to pick a stock brokerage, but don't worry - we've analyzed dozens of stock brokerages and apps to help you choose where to buy Adobe stock.
- Create a brokerage account: Sign up for 0% fee trading with the highest-rated brokerage we've found.
- Deposit funds into your investment account: Select your payment method and add your information.
- Analyze Adobe stock: The Adobe ticker symbol is ADBE. Is Adobe stock a good investment? Should you buy shares of ADBE? How do ADBE's underlying business fundamentals look? Do top analysts think Adobe is a good buy? Why has ADBE's stock price moved recently? (Hint: Our stock research tools can help you decide if ADBE is a good stock to buy).
- Execute your ADBE buy order: Decide if you will purchase ADBE shares at the current market price or use a limit order to purchase ADBE stock at a given price.
- Monitor your investment in ADBE: Create a watchlist to keep tabs on your position in Adobe stock.
Step 1: Choose where to buy Adobe stock
You will need a brokerage account in order to access the NASDAQ market and buy ADBE stock.
Our favorite brokerage: eToro
Based on our experience, eToro is the best online stock brokerage. Here's why:
- Invest in stocks with zero commissions: Invest without commissions.
- Buy fractional shares: Even if you can't afford a full share, you can still purchase the stock.
- Access to global markets: From Technology to Financial Services, New York to Hong Kong — you can fill your portfolio with stocks from the world's top exchanges.
- Social investing: eToro has a community with more than 20 million users globally. Talk to, learn from, and copy the crypto trades of top investors.
- Security: eToro is a regulated and licensed fintech leader.
- Buy other assets: Such as ETFs and cryptos.
Get $10 towards your purchase of shares by signing up for an account with eToro now.
Open eToro AccountStep 2: Create a brokerage account
Now that you've chosen the right brokerage, it's time to fill out some personal info so you are able to invest in ADBE today.
How to Create a New Brokerage Account on eToro
- Click here to get started.eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk.
- Input your personal details to start your new brokerage account.
- Submit your application by clicking the "Create Account" button. Get started with eToro today
Step 3: Deposit funds into your investment account
Now that you have opened your account on the best stock trading app for beginners, your next step is to transfer the money for your investment:
Check out the video below to see the process of transferring funds into your new brokerage account.
Step 4: Analyze Adobe stock
After you have figured out the best place to buy Adobe stock, it's crucial to research their stock prior to buying, so you can wrap your head around the risk and upside.
Overview of key ADBE info
Adobe Overview
WallStreetZen was created to help part-time investors do better fundamental analysis.
You can view all of the due diligence checks on ADBE's stock page.
Is ADBE stock undervalued?
Investors use many financial metrics, analyses, models, and charts to gauge ADBE's true value.
Using relative valuations ratios:
- ADBE may be overvalued based on its P/E ratio of 42.83x, relative to Software - Infrastructure industry P/E ratio of 32.81x
- ADBE may be overvalued based on its P/B ratio of 15.42x, relative to Software - Infrastructure industry P/B ratio of 11.94x
- ADBE may be overvalued based on its PEG ratio of 2.54x
You can do more valuation analysis on ADBE's stock here.
Is ADBE a healthy company?
Passed Health Checks:
- There are more short-term assets than long-term liabilities on the ADBE balance sheet.
- There are more short-term assets than short-term liabilities on the ADBE balance sheet.
- ADBE's operating cash flow of $6.73B allows it to safely service it's debt of $6.08B.
- ADBE earnings of $6.90B is not sufficient to cover its interest payments.
Failed Health Checks:
- ADBE has a relatively high debt to equity ratio of 1.05.
- Total ADBE debt is higher than 5 years ago, relative to shareholder equity.
- ADBE profit margin has gone down from 27.1% to 25.6% in the past year.
Is ADBE stock a Buy, Hold, or Sell, according to Wall Street analysts?
Out of 20 Wall Street analysts who give forecasts on ADBE, the consensus analyst rating on Adobe is a Buy
Please note that analyst ratings are not recommendations, nor are they financial advice.
Latest ADBE Analyst Recommendations
Keith Weiss, a top 2% analyst from Morgan Stanley maintains ADBE with a strong buy rating and maintains their ADBE price target from $660.00 to $660.00, on Sep 13, 2024.
Morgan Stanley's Keith Weiss maintained their Strong Buy rating on Adobe (NASDAQ: ADBE). The analyst also maintained a $660 price target.
Adobe reported its Q3 2024 earnings on 2024/09/12.
Weiss noted that the quarter's results beat the consensus across revenue, ARR (Annual Recurring Revenue), and margins, "with the magnitude of the Digital Media Net New ARR beat sustaining at about 10%."
However, the analyst cautioned that management's "initial" guidance for Q4 2024 Digital Media Net New ARR at $550M was "disappointing" and below the $570M implied in Q3's guide.
With Adobe's building momentum behind a broadening portfolio of AI-enabled solutions, Weiss said that Morgan Stanley attributes to implied guidance cut to "conservatism."
Their firm remains a buyer of the stock, the analyst added.
Earnings Report
For Q3 2024, Adobe reported:
- EPS of $4.65, which beat the Zacks Consensus Estimate by 2.65% and Q3 2023's $4.09 by 13.7%.
- Revenue of $5.41B, which beat the Zacks Consensus Estimate of $5.37B and, by 10.6%, Q3 2023's $4.89B.
For Q4 2024, management guided:
- EPS of $4.63 to 4.68.
- Revenue of $5.5B to $5.55B.
Chair & CEO Shantanu Narayen commented: "Adobe's record Q3 performance is a testament to our relentless innovation and commitment to delivering value to our customers.
“With groundbreaking advancements in AI across Creative Cloud, Document Cloud and Experience Cloud, we are empowering millions of users worldwide.”
CFO Dan Durn added: “In Q3, Adobe delivered cash flows of over $2B and exited the quarter with record RPO, demonstrating the power of combining growth with world-class profitability.
“Given the massive markets we are catalyzing, I’m confident in our ability to drive growth and industry leadership.”
Mark Moerdler, a top 17% analyst from Bernstein maintains ADBE with a buy rating and lowers their ADBE price target from $660.00 to $644.00, on Sep 13, 2024.
Brent A. Bracelin, a top 1% analyst from Piper Sandler maintains ADBE with a strong buy rating and maintains their ADBE price target from $635.00 to $635.00, on Sep 13, 2024.
Parker Lane, a bottom 3% analyst from Stifel Nicolaus maintains ADBE with a strong buy rating and raises their ADBE price target from $600.00 to $650.00, on Sep 6, 2024.
Saket Kalia, a top 3% analyst from Barclays maintains ADBE with a strong buy rating and raises their ADBE price target from $650.00 to $675.00, on Sep 4, 2024.
You can dig deeper into what analysts are forecasting on the Adobe stock forecast page.
ADBE Trading Indicators
ADBE Growth Metrics
Last year, ADBE earnings were $5.36B. Over the last 5 year, ADBE's earnings have increased by 15.86% per year. This was slower than the Software - Infrastructure industry average of 26.97%.
Last year, ADBE revenue was $20.95B. During the last 5 year, ADBE's revenue has gone up by 14.5% per year. This was slower than the Software - Infrastructure industry average of 17.82%.
You can analyze ADBE's earnings and revenue performance here.
Who is buying/selling ADBE?
In the last year, executives and large shareholders at ADBE have sold more shares than they have bought.
Shantanu Narayen, Chair and CEO of ADBE, was the latest ADBE insider to sell. They sold $183,994.65 worth of ADBE stock on Sep 25, 2024.
Research more about who owns ADBE shares here.
Can I rely on ADBE as an income stream?
No, Adobe doesn't provide an income stream by paying out dividends.
ADBE Social Trading Data
One of the major reasons eToro is our favorite brokerage is because of its social trading community.
Click below to see what other community members have to say.
Step 5: Execute your ADBE buy order
There are two primary options:
- Market order: A market order is an order to buy or sell a stock at the best possible price.
Market orders are generally fine for most investors. - Limit order: A limit order allows you to buy or sell a security at a specific price (or better).
If you want to ensure you're buying or selling at a specific dollar amount limit, use a limit order.
Click the Open Trade button and eToro will place your order.
If you need more assistance buying stocks on eToro, watch the how to video below:
Step 6: Monitor your investment in ADBE
Now that you own some ADBE stock, you'll want to stay up-to-date on your new stock purchase.
Start a watchlist to monitor your ADBE stock.
ADBE Feed
How to Buy Stock in Adobe
To summarize, here are the 6 steps to buy stock in Adobe:
- Choose where to buy Adobe stock
- Create a brokerage account
- Deposit funds into your investment account
- Analyze Adobe stock
- Execute your ADBE buy order
- Monitor your investment in ADBE
If you require a online brokerage, eToro is our recommended option.
Get Started with eToro TodayIf you would like to track your investment in Adobe, create a watchlist today.
Other Articles You Might Like
FAQ
Company
AboutNewsBlogStock Investing FAQPlansPrivacy PolicyTerms of ServiceCancellation & RefundsHelp GuidesContactTwitterYouTubeNewsletterInformation is provided 'as-is' and solely for informational purposes and is not advice. WallStreetZen does not bear any responsibility for any losses or damage that may occur as a result of reliance on this data.