Why Adobe Stock Skyrocketed Today
Shares of software company (NASDAQ: ADBE) skyrocketed on Friday after the company reported financial results for its fiscal second quarter of 2024. As of 10:30 a.m. ET, Adobe stock was up 14% -- that's a big deal for a company that's valued at well over $200 billion.
Adobe generated Q2 revenue of $5.31 billion, which was up 10% year over year. This beat the high end of management's guidance by a hair. And on the bottom line, management said it was going to have earnings per share (EPS) of $3.35 to $3.40. But here, too, the company's financial results exceeded expectations by reporting EPS of $3.49.
J.P. Morgan analyst Mark Murphy gave some context in his note to investors, saying that Adobe investors were in the "trough of disillusionment," according to The Fly. To Murphy's point, the company's top-line growth has been more modest in recent years compared to what investors are more used to, as the chart below shows.
Source Fool.com
Adobe Inc. Stock
With 60 Buy predictions and 2 Sell predictions Adobe Inc. is one of the favorites of our community.
As a result the target price of 588 € shows a slightly positive potential of 13.16% compared to the current price of 519.6 € for Adobe Inc..
