How to Trade Adobe Post Q2 Performance

June 20, 2023 21:51

Adobe is a multinational software company whose products include Adobe Acrobat, Experience Cloud, Photoshop, Lightroom, Illustrator and many others including its new AI Sensei.  

The tech company just announced its fiscal second-quarter 2023 earnings performance. Learn more about Adobe’s performance and what analysts are forecasting for the stock below.

Stock: Adobe Inc
Symbol for Invest.MT5 Account: ADBE
Date of Idea: 20 June 2023
Time Line: 1 - 6 months
Entry Level: $520.00
Target Level: $600.00
Position Size for Invest.MT5 Account: Max 5%
Risk: High
  • The Invest.MT5 account allows you to buy real stocks and shares from 15 of the largest stock exchanges in the world.

All trading is high risk and you can lose more than you risk on a trade. Never invest more than you can afford to lose as some trades will lose and some trades will win. Start small to understand your own risk tolerance levels or practice on a demo account first to build your knowledge before investing. 

Adobe Fiscal Q2 2023 Performance

Here are some of the key highlights from the latest fiscal second quarter earnings report from Adobe: 

  • Earnings per share grew from $2.49 to $2.82 
  • Quarterly revenue of $1.3 billion vs $1.18 billion the same time last year 
  • Revenue up 10% year on year to $4.82 billion, expected $4.78 billion 
  • Digital media revenue is up 10% year over year 
  • Digital experience revenue (including Experience Cloud) is up 12% year over year 
  • Raised full-year guidance 

Adobe’s second quarter 2023 earnings performance beat most of their own expectations with higher revenue and earnings per share. This led to the management team increasing their yearly guidance for revenue to fall between $19.25 billion and $19.35 billion by the end of the year – analysts were forecasting $19.30 billion.  

Much of Adobe’s earnings call focused on its artificial intelligence products which it has been building on in recent quarters. It made the decision to charge its commercial customers for its Firefly software which can turn text into 3-D images, audio, video and illustrations. Its AI art generator experienced activity 80 times higher than Adobe was expecting.  

However, one uncertainty around Adobe stock and other technology stocks is the Federal Reserve’s policy on interest rates. In its last meeting, the Fed kept interest rates on hold but stated there are more to come throughout the year.  

Higher interest rates can affect stock prices as higher borrowing costs can eat into profits. The stock market crash in 2022 was largely triggered by central banks starting to increase interest rates for the first time since the pandemic.  

Therefore, tracking macroeconomic data will also be important to analysing the prospects of Adobe’s share price. 

Adobe Stock Forecast - What do the Analysts Say?

According to analysts polled by TipRanks for a Adobe stock forecast in the past 3 months, there are currently 15 buy, 13 hold and 0 sell ratings on the stock. The highest price level for a Adobe stock forecast is $600.00 with the lowest price target at $450.00. 

The average price target for a Adobe stock forecast is $541.52.

Source: TipRanks, 20 June 2023


An Example Trading Idea for the Adobe Stock Price

An example trading idea for the Adobe share price could be as follows:  

  • Buy the stock on a break above the post-earnings high of $520.00 to allow for volatility. 
  • Target just below the highest analyst price target of $600.00. 
  • Keep your risk small at a maximum of 5% of your total account.   
  • Time Line = 1 – 6 months  
  • If you buy 10 Adobe shares:  
    • If target is reached = $800.00 potential profit [($600.00 - $520.000) * 10 shares].

Remember that markets go up and down and it is unlikely the share price will move up in a straight line. In fact, it may even go much further down before it rises, especially considering how tech stocks are right now. 

Be sure to exercise good risk management and always know how much you could potentially lose on a trade and the risks involved, as well as the costs.

With the Admirals Invest.MT5 account you can buy and sell US stocks with a commission from $0.02 per share. This means buying 10 shares in Adobe stock would result in a commission of $0.20 ($0.02 * 10 shares) for executing a per-side transaction.

There is a low minimum transaction fee of $1. So, the example trading idea above would result in a commission of just $1 overall! 

How to Buy Adobe Stock in 4 Steps  

With Admirals, you can buy shares in companies like Adobe with a low commission of just $0.02 per share and a low minimum commission of just $1 on US stocks. 

  1. Open an account with Admirals to access the dashboard.   
  2. Click on Trade on one of your live or demo accounts to open the web platform.   
  3. Search for your stock at the bottom of the Market Watch window and drag the symbol onto the chart.   
  4. Use the one-click trading feature, or right-click and open a trading ticket to input your trade size, stop loss and take profit level.
Source: Admirals MetaTrader 5. Adobe. Monthly. Date: 1 Oct 1998 to 19 June 2023, captured on 19 June 2023. Past performance is not a reliable indicator of future results or future performance.


Click on the banner below to trade Adobe stock today! ▼▼▼ 

Do You See the Adobe Stock Price Moving Differently?   

Remember that all analytics and trading ideas are based on the personal view and experience of the author.  

If you believe there is a higher chance Adobe's share price will move lower, then you can also trade short from a CFD (Contracts for Difference) trading account which Admirals also provide.  

The Trade.MT5 and Trade.MT4 account allows you to speculate on the price direction of stocks and shares using CFDs.  

This means you can trade long and short to potentially profit from rising and falling stock prices. Learn more about CFDs in this How to Trade CFDs article. 


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Jitanchandra Solanki
Jitanchandra Solanki Financial Markets Author, Admirals London

Jitanchandra is a financial markets author with more than 15 years experience trading currencies, indices and US equities. He is an accredited Market Technician with a BA Hons degree.