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 $473.44, down 0.77% from the previous day, and has increased 28.1% in one year. It has overperformed other stocks in the Software - Infrastructure industry by 0.12 percentage points. Adobe stock is currently +42.65% from its 52-week low of $331.89, and -25.82% from its 52-week high of $638.25.
As of Apr 25, 2024, there are 448M shares of ADBE outstanding. The market cap of ADBE is $212.10B. In the past 24 hours, 2.09M 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.
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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 undervalued based on its P/E ratio of 45x, relative to Software - Infrastructure industry P/E ratio of 75.61x
- ADBE may be overvalued based on its P/B ratio of 13.72x, relative to Software - Infrastructure industry P/B ratio of 11.14x
- ADBE may be overvalued based on its PEG ratio of 2.58x
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.
- Total ADBE debt is lower than 5 years ago, relative to shareholder equity.
- ADBE's operating cash flow of $6.78B allows it to safely service it's debt of $4.09B.
- There are more short-term assets than short-term liabilities on the ADBE balance sheet.
- ADBE earnings of $6.28B is not sufficient to cover its interest payments.
Failed Health Checks:
- ADBE has a relatively high debt to equity ratio of 0.86.
- ADBE profit margin has gone down from 26.3% to 24.1% 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
Brian Schwartz, a top 13% analyst from Oppenheimer reiterates ADBE with a buy rating and maintains their ADBE price target from $660.00 to $660.00, on Mar 27, 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 $700.00 to $700.00, on Mar 27, 2024.
Jason Ader, a bottom 3% analyst from KeyBanc initiates coverage on ADBE with a strong sell rating and announces their ADBE price target of $445.00, on Mar 21, 2024.
KeyBanc's Jason Ader initiated their coverage on Adobe (NASDAQ: ADBE) with a Strong Sell rating and a $445 price target.
Regarding Adobe, Ader backgrounded that "Creative Cloud's stranglehold on the digital media content creation space is "both a source of strength and worry."
Competitive pressure will rise in the coming years and slow Creative Cloud growth to the high single digits because of "gen AI and the emergence of strong low-end tools," the analyst predicted.
Earnings Report
For Q1 2024, Adobe reported:
- EPS of $4.48, which beat the Zacks Consensus Estimate by 2.3% and, by 17.9%, Q1 2023's $3.80.
- Revenue of $5.18, which beat the Zacks Consensus Estimate of $5.13B and Q1 2023's by $4.66B by 11.2%.
- Digital Media (Creative Cloud and Document Cloud) segment revenue of $3.82B, up 12% Y/Y.
- Digital Experience segment revenue of $1.29B, up 10% Y/Y.
- Net new Digital Media ARR (Annualized Recurring Revenue) of $432M.
- The repurchase of 3.1M shares in the quarter.
For Q2 2024, management guided:
- EPS of $4.35 to $4.40.
- Revenue of $5.25B to $5.3.
- Digital Media segment revenue of $3.87B to $3.9.B.
- Digital Experience segment revenue of $1.31B to $1.33B.
- Net new ARR in the Digital Media segment of $440M.
- Digital Experience subscription revenue of $1.165B to $1.185B.
CEO Shantanu Narayen commented: “Adobe drove record Q1 revenue demonstrating strong momentum across Creative Cloud, Document Cloud and Experience Cloud
“We’ve done an incredible job harnessing the power of generative AI to deliver groundbreaking innovation across our product portfolio."
CFO Dan Durnadded: “Adobe’s Q1 results and record RPO reflect strong customer adoption of our innovative products and services.
“As a result of our strong trajectory of growth and profitability, we are announcing a new $25B share repurchase program, which demonstrates Adobe’s continued commitment to returning capital to our shareholders.”
J. Derrick Wood, a top 3% analyst from TD Cowen maintains ADBE with a buy rating and lowers their ADBE price target from $650.00 to $640.00, on Mar 15, 2024.
Brad Sills, a top 3% analyst from Bank of America maintains ADBE with a strong buy rating and lowers their ADBE price target from $700.00 to $640.00, on Mar 15, 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 $4.80B. Over the last 5 year, ADBE's earnings have increased by 13.93% per year. This was slower than the Software - Infrastructure industry average of 141.8%.
Last year, ADBE revenue was $19.94B. During the last 5 year, ADBE's revenue has gone up by 15.85% per year. This was slower than the Software - Infrastructure industry average of 17.26%.
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.
Mark S. Garfield, SVP CAO of ADBE, was the latest ADBE insider to sell. They sold $45,435.77 worth of ADBE stock on Apr 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.
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