☁️ Adobe: Documents In The Creative Cloud?

Tencent Music announces biggest ever share buyback

Hey Global Investor, here’s what you need to know before the US markets open.

Market Snapshot 📈

S&P 500 (Friday’s Close) 3,974.54 +65.02 (1.66%)

NASDAQ (Friday’s Close) 13,138.72 +161.04 (1.24%)

FTSE 100 (5 PM IST) 6,737.28 −3.35 (0.082%)

NIFTY 50 (Friday’s Close) 14,507.30 +182.40 (1.27%)

USDINR (5 PM IST) 72.62 (1 Year -4.00%)

🔥 Top Movers

TUYA +28.00%
TLS +22.63%
CENX +17.43%

GSX -41.56%
DISCK -29.55%
DISCA -27.45%

☁️ Adobe: Documents In The Creative Cloud?

Adobe (ADBE) reported earnings last week, beating expectations once again.

Background: Founded in 1982, Adobe was instrumental in the desktop publishing revolution through its PostScript printer language. PostScript made Adobe profitable in its first year, thanks to the licensing fee from Apple. The first Silicon Valley company to achieve this feat, Adobe went public four years later, in 1986.

Adobe had a resilient growth history that pushed its market valuation to $224.8B as of 2021. Since Shantanu Narayen took over as CEO in 2007, there’s been no looking back for the company. What followed was years of expansion with new tools and acquisitions. However, the most significant turning point was the introduction of Creative Cloud in 2013.

Thanks to the creative cloud and document cloud platforms (largest globally), the company’s performance in the post-Covid world has been remarkable. The demand for its services was mainly fueled by SMEs (Small and Medium Enterprises), which were looking to keep business going despite the pandemic.

What Happened?: The company had an excellent Q1 with earnings beating its expectations as well as analyst projections to boot. Adobe has been surpassing consensus EPS estimates for the last four quarters.

Here are key Q1 stats:

  • Revenue was $3.91B, up 26% Vs. $3.76B expected
  • EPS was $3.14 Vs. $2.78 expected
  • Net income was $1.26B, up 31%

The digital business contributed $2.86B to the revenues, up 32% Y-o-Y. To assist marketers working from home in managing their work, Adobe recently acquired Workfront, a work management platform for marketers, for $1.5B. Workfront brought in $38M for the quarter.

Adobe has also issued improved full-year guidance and investors have cheered the update. The expected revenue for the year ending in November is $15.45B and EPS of $11.85 (as against the prior forecast of $15.15B in revenue and EPS of $11.20). Moreover, Adobe is set to partner with multiple government agencies in the US to help modernize and digitize their systems.

Separately, Adobe has appointed an International Advisory Board to guide customers through the dynamic Covid-19 landscape. The company also signed an Equal Pay Pledge along with Twitter and more to benefit female employees. Adobe is making the right moves on all fronts, and the stars seem well aligned on its push to move document creation and creative content generation wholly to the cloud for its clients – be they individuals or companies.

Market Reaction: ADBE closed at $469.09, up 4.01%. In pre-market trading, the stock is down 0.19%.

Company Snapshot 📈

ADBE $469.09 +18.10 (+4.01%)

Analyst Ratings (22 Analysts) BUY 77%   HOLD 23%   SELL 00%

Newsworthy 📰

Deep Dive:Facebook, Google plan new undersea cables to connect Southeast Asia and America (FB +1.54%, GOOG -0.43%)

Streaming: HBO Max begins rolling out audio descriptions (T  +0.76%)

Buyback: Tencent Music Entertainment Group Announces $1 billion Share Repurchase Program (TME -1.28%)

Later Today 🕒

  • Before Market Open: Cal-Maine Foods Inc Earnings (CALM)
  • 7:30 PM IST: Existing home sales (SAAR)

Fun Fact of The Day 🌞

Dogs can sense fear

Disclaimer: The content of this article has been created and published by Winvesta India Technologies Pvt. Ltd., in order to ease the reader’s understanding of the subject matter. The information and/or content (collectively “Information”) provided herein is general information sourced through various news reports and does not constitute a research report or a research analysis. The Information is not intended to offer advice, target or solicit any particular customer or group of customers to buy or sell securities. 

Winvesta does not render any research or advisory services and provides a more detailed description of its services on its website and mobile application along with the terms and conditions published therein from time to time. While reasonable care has been exercised to ensure that the Information is adequate and reliable, no representation is made by Winvesta as to its accuracy or completeness and Winvesta, its affiliates, subsidiaries and employees accept no liability of whatsoever nature for any direct or consequential loss, including without limitation any loss of profits, arising from reliance on this Information. Neither Winvesta nor any of its affiliates are acting as an investment adviser, research analyst or in any other fiduciary capacity. Accordingly, reader’s are expected to undertake their own due diligence in consultation with their own advisors and are advised not to solely rely on the Information. Any such reliance shall be at the reader’s own risk. 

All investments involve risk and the past performance of a security, or financial product does not guarantee future results or returns. There is always the potential of losing money when you invest in securities, or other financial products. Investors should consider their investment objectives and risks carefully before investing.

Start Building Your Global Portfolio Today

Download Winvesta App now to Get Started