274.77 0.00 (0.00%)
After hours: 4:37PM EDT
|Bid||274.02 x 800|
|Ask||274.55 x 800|
|Day's Range||273.54 - 277.48|
|52 Week Range||204.95 - 291.71|
|Beta (3Y Monthly)||1.04|
|PE Ratio (TTM)||50.98|
|Earnings Date||Jun 18, 2019|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||295.38|
Jana Partners is a New York-based value-oriented and event-driven hedge fund that was launched 18 years ago by Barry Rosenstein. Prior to founding his own investment management firm, Barry Rosenstein honed his investment acumen at private equity fund Sagaponack Partners, at Genesis Merchant Group's Investment and Merchant Banking Group, which he founded as well. Barry […]
Adobe (NASDAQ:ADBE) stock has been around a long time. It is one of the tech industry pioneers that transitioned from selling software to enterprise companies to delivering professional products all the way through the funnel to individuals.Source: Shutterstock It was an original Silicon Valley company, founded in San Jose in 1982. That's a long time ago, especially in tech world. Remember, Alphabet's (NASDAQ:GOOG, NASDAQ:GOOGL) Google is only 20 years old.That means ADBE stock has survived the dot-com bust in 2000 as well as the financial meltdown in 2008. It has also been able to grow as tech has developed, competitors have risen and fallen and revenue models have changed.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Adobe Stock Continues to Look StrongThat is an immense achievement. Adobe isn't a niche player that makes one unique product that has significant barriers to entry. Its growth depends on more and more people and companies using its products. That means it has to stay not only relevant, but ahead of the curve, anticipating the needs of its customers.It made (and continues to make) significant inroads into design software for rapid prototyping (aka, 3D printing) before it started to become mainstream, for example.But the big point of inflection for ADBE is summed up in two simple words: recurring revenue. * 5 Safe Stocks to Buy This Summer Like many of the older software companies, Adobe was based on a model that relied on regular updates on their software versions. Microsoft (NASDAQ:MSFT) was another prime example.They would sell personal and professional versions of one program, like PhotoShop, and then update those versions over the next year or two. Customers would then go out and buy the new software when it was available.However, as the internet became more integrated into business life, companies started to build their models around subscription-based services. Instead of buying each version of new software from a vendor, people could buy a monthly or yearly subscription that allowed their software packages to be updated as soon as new versions were available.Imagine how much easier this was for companies with hundreds and thousands of employees, each using various software packages. Logistics were simplified, installation times evaporated and IT staff could be more productive. Plus, for companies like Adobe, revenue became more consistent and reliable. That is something the stock market loves.While that transition took some time, ADBE stock has been a big beneficiary of the results, both on the equity side and the business side.It reported Q1 earnings in March and showed that earnings and revenue are doing as well as expected. It also projected the full year to be along analysts expectations as well.The other big thing ADBE is developing now is partnerships with two of the world's top ecommerce companies -- Amazon (NASDAQ:AMZN) and Google.It's allowing third-party sellers to use its Magento design suite to make ads and landing pages for Amazon vendors. And on GOOGL, it's providing Magneto to online sellers to design, track and manage its ad campaigns. These could bring about another round of massive growth for ADBE, which continues to stay one step ahead of its competition.Louis Navellier is a renowned growth investor. He is the editor of four investing newsletters: Growth Investor, Breakthrough Stocks, Accelerated Profits and Platinum Growth. His most popular service, Growth Investor, has a track record of beating the market 3:1 over the last 14 years. He uses a combination of quantitative and fundamental analysis to identify market-beating stocks. Mr. Navellier has made his proven formula accessible to investors via his free, online stock rating tool, PortfolioGrader.com. Louis Navellier may hold some of the aforementioned securities in one or more of his newsletters. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 5 Safe Stocks to Buy This Summer * The 5 Best Telecom Stocks to Buy Now * 6 Innovative Stocks With Big Long-Term Growth Potential Compare Brokers The post Two Simple Words Keep Adobe Stock Charging Ahead appeared first on InvestorPlace.
In 2015, a year after Satya Nadella became its CEO and committed his company to the cloud, I put some Microsoft (NASDAQ:MSFT) shares in my retirement account and forgot about them. My patience has been rewarded. A $53 investment in MSFT stock is worth almost $127 now, and reinvesting dividends has brought me more shares, which have also risen in value.Source: Shutterstock With a market cap of $972 billion, Microsoft is now the world's most valuable company, and despite his earnest philanthropy, co-founder Bill Gates is worth over $100 billion.The question is how long can the company keep growing without getting into the same monopoly penalty box that kept it from reaching its 1999 highs until 2016?InvestorPlace - Stock Market News, Stock Advice & Trading TipsThat's Nadella's challenge now. Spreading Bets Through CloudThe key is to continue spreading the company's bets, using the Azure cloud, growing as humbly as it can. * 10 Names That Are Screaming Stocks to Buy The humility is evident in the company's numbers. Growth returned just two years ago, and net income was lower in fiscal 2018 than in 2017. But Nadella was using the time to build infrastructure and relationships. The big benefits have begun appearing in the last six months. At its present pace, Microsoft will bring in well over $120 billion of revenue and over $30 billion of net income during fiscal 2019, adding to a cash pile that had reached $131 billion at the end of March. Microsoft has already piled up over $21 billion in operating cash flow through the first half of the fiscal year. Forget it becoming IBM (NYSE:IBM), Microsoft is now Apple (NASDAQ:AAPL).The key lies in partnering with other companies and not trying to consume them. Microsoft has over 200 cloud partners, most of which you have never heard of, for whom its tools are essential. Microsoft has deep relationships with companies like Adobe (NASDAQ:ADBE) and SAP (NYSE:SAP). But it has avoided a big acquisition that might lead rivals to compare it with Oracle (NASDAQ:ORCL), which bought many of its database channel partners in the 2000s, then demanded monopoly rents.The best evidence for how well this works is a recent announcement with Sony (NYSE:SNE) on gaming and streaming. The two firms' consoles have battled each other for decades. But in the new field of cloud gaming, they position themselves as underdogs against Amazon (NASDAQ:AMZN) and Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL), which are already in the field. Good to Not Be KingThe strength of other cloud czars is Microsoft's secret weapon in any battle with regulators.Windows is no longer a monopoly thanks to Google Chromebooks. Skype is barely mentioned in video calling -- the focus is all on Zoom Video (NASDAQ:ZM). No one worries about LinkedIn because Facebook (NASDAQ:FB) is so dominant.The acquisitions Microsoft is making are on the bleeding edge, in the Internet of Things, where it trails Chinese giants like Alibaba (NASDAQ:BABA). Microsoft was seen as a good home for Github, the open source repository, because it's seen as more neutral than other potential acquirers, like IBM, might be. The Bottom LineIn his most recent conference call, Nadella emphasized areas like security, hardware and social, where the company clearly trails market leaders.But Microsoft Azure is the most profitable cloud. Microsoft booked $9.7 billion of revenue as "intelligent cloud" during the quarter, with margins of over 20%, putting $3.4 billion of new capital to work there. Again, thank goodness for Amazon. No one is screaming about an "Azure monopoly."So long as Nadella can keep spreading his bets, Microsoft and investors like me will keep smiling all the way to the bank.Dana Blankenhorn is a financial and technology journalist. He is the author of a new environmental story, Bridget O'Flynn and the Bear, available now at the Amazon Kindle store. Write him at email@example.com or follow him on Twitter at @danablankenhorn. As of this writing he owned shares in MSFT, AMZN and AAPL. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 5 Safe Stocks to Buy This Summer * The 5 Best Telecom Stocks to Buy Now * 6 Innovative Stocks With Big Long-Term Growth Potential Compare Brokers The post The Real Reason Microsoft Stock Stands Out Among Other Big Tech Names appeared first on InvestorPlace.
In a market that's near its all-time highs, there are a number of stocks like Adobe (NASDAQ:ADBE). There's little doubt that Adobe has an attractive business with excellent growth prospects. The argument comes down to what ADBE stock price should be.Source: Shutterstock ADBE stock isn't cheap. The company's guidance, which it updated after its strong Q1 earnings report, indicates that the price-earnings ratio of Adobe stock, based on expected fiscal 2019 adjusted earnings per share, is 35. Among 56 U.S.-listed stocks with a market cap over $125 billion, only three - PayPal (NASDAQ:PYPL), Netflix (NASDAQ:NFLX), and Amazon.com (NASDAQ:AMZN) - have a forward P/E ratio that's higher than ADBE's 28.4. * 6 Stocks to Buy for This Decade's Massive Megatrend But Adobe almost certainly belongs in that group. And in the context of its current growth and its opportunities, ADBE stock price actually doesn't seem excessive at this point. I've been a fan of Adobe stock for a long time, and ADBE stock has continued to rise for years. Right now, it doesn't look like that will change.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Why ADBE Stock Price Is Cheap EnoughOne simple comparison highlights why Adobe stock is, at worst, cheap enough to consider. Again, ADBE trades at 35 times this year's expected EPS, and 28 times analysts' average 2020 EPS estimate. For a large-cap software play, that's simply not that expensive.Indeed, look at Microsoft (NASDAQ:MSFT), an Adobe cloud partner and a long-rumored potential buyer of the company. Microsoft - even excluding its almost $8 per share in net cash - trades at 26 times analysts' average fiscal 2019 EPS estimate and over 23 times their FY20 consensus EPS estimate.Should Adobe stock be trading at a higher valuation than Microsoft stock? Absolutely. ADBE's growth going forward should be far more impressive. Adobe's adjusted earnings per share, according to analysts' average projections, should rise 23% next year, more than double Microsoft's anticipated increase. Both companies have benefited from the shift to cloud-based services, but Adobe has much lower exposure to flattish consumer PC revenue.This data doesn't mean ADBE stock price is cheap. Indeed, I was skeptical toward Microsoft stock for some time before turning bullish on it last year. The recent run of Microsoft stock to a near-trillion-dollar market cap makes MSFT once again somewhat dicey from a valuation standpoint.But the valuation gap between MSFT and ADBE stock is, at worst, reasonable. If Adobe 's EPS continues to rise at a 20%+ annual rate, that gap will disappear in just a few years. Put another way, 35 times this year's earnings for ADBE stock might sound expensive. But Adobe's EPS looks poised to reach $12 by 2021. At current levels, ADBE stock is trading around 23 times $12. A multiple of 23 times for ADBE stock sounds close to cheap. Growth Drivers for Adobe StockThe ADBE stock price is, at worst, in a range that will enable Adobe to grow into its valuation and then rise further. ADBE is not quite priced for perfection, as some may believe.If ADBE's growth continues, Adobe stock should rise and outpace the market. And there are plenty of reasons to expect that ADBE's growth will continue. Creative Cloud demand is only going to grow as creative jobs multiply amid the growth of streaming media and small businesses, i.e the customers of Shopify (NYSE:SHOP) and Etsy (NASDAQ:ETSY).ADBE's Experience Cloud - boosted by the acquisitions of Marketo and Magento last year - will continue to expand its addressable market and benefit from the increasing importance of data analytics and the increasing breadth of marketing channels, including digital marketing.Adobe should benefit from many of the trends that have driven tech stocks, in particular, to their current valuations. The shift to cloud? Check. Digital advertising growth? Check. Big data? Check . If an investor is going to pay up for exposure to those trends, ADBE stock is a logical choice for him or her. Watch the MarketThe biggest risk to ADBE, in fact, seems to be external. At some point, investors may bring stock valuations down across the board. (But I'd note that risk has been seemingly ever-present for the past decade,.) The ADBE stock price dropped by more than 25% in the market-wide swoon late last year, so it's not immune to broad market weakness.But any investor owning pretty much any tech stock at the moment is taking some sort of valuation risk. And there doesn't appear to be many tech stocks as appealing as ADBE. Adobe stock isn't cheap, but it shouldn't be, at least not yet. And if it keeps doing what it has been doing, $267 will seem cheap in retrospect.As of this writing, Vince Martin has no positions in any securities mentioned. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 6 Stocks to Buy for This Decade's Massive Megatrend * The 7 Best Stocks to Buy From the IPO ETF * 7 Athletic Apparel Stocks With Marathon Pace Compare Brokers The post Adobe Stock Should Keep Moving Higher appeared first on InvestorPlace.
Okta (NASDAQ:OKTA) has had an impressive run, with Okta stock trading under the radar as a cloud play, and cloud stocks are on fire. There's no other way to put it.As the global enterprise world pivots from on-premise to cloud-hosted solutions for price, convenience, and accessibility advantages, the providers of those cloud-hosted solutions are growing by leaps and bounds.InvestorPlace - Stock Market News, Stock Advice & Trading TipsConsequently, the stocks of cloud titans like Salesforce (NYSE:CRM), Adobe (NASDAQ:ADBE), Amazon (NASDAQ:AMZN), and ServiceNow (NYSE:NOW) have soared.Okta has gained far more than any of those headline cloud stocks over the past few years. It went public in April 2017 at $17 per share and trades today around $110.What's the story behind the huge gains from Okta stock? Cloud security. Broadly speaking, everyone and their best friend in the business world is pivoting to the cloud. That means there's a whole bunch of corporate and customer data up in the cloud. Security surrounding that data isn't all that great, hence the huge volume of hacks and data breaches over the past few years. Thus, enterprises are increasingly seeking a better cloud security solution. Okta provides just that.As such, Okta has found itself at the convergence of two secular tailwinds (cloud adoption and cybersecurity). Those two tailwinds have produced huge growth for the company. Shareholders have cheered that big growth, and Okta stock has taken off like a rocket ship.At these levels, there's no hiding the truth that Okta stock is expensive. But, is it too expensive? I don't think so. If you take a big picture outlook on the stock, this is a big growth company with a ton of upside left over the next several years.As such, I think investors who are late to the party shouldn't be too concerned. There's still plenty of long term upside left. Big Market OpportunityIn the big picture, Okta is attacking an exceptionally valuable and large market with a unique solution, and as this unique solution gains scale over the next several years, Okta's revenues and profits will continue to grow at a robust pace.Okta operates in the enterprise cloud market. This is a huge market. Global cloud spend is projected to hit $500 billion by 2020. But, only 20% of enterprise workloads have migrated to the cloud so far. Over time, that number will move towards 100% given that cloud-hosted solutions provide price, convenience, and accessibility advantages over on-premise solutions.Thus, the big cloud growth narrative is only one-fifth of way through, meaning that the enterprise cloud market is not just big, but also growing very quickly, too.Within this market, security is a big issue. Everyone is pivoting to the cloud. But, they aren't just pivoting wholesale to one cloud. Instead, the norm in the cloud market is hybrid cloud, which is essentially adopting multiple different cloud applications depending on the use case (Adobe for visual solutions, ServiceNow for automation, Salesforce for marketing, so on and so forth).Consequently, the enterprise pivot to the cloud simultaneously means a pivot of valuable corporate and customer information across various different cloud service providers.That data needs to be protected. But, protecting it isn't very easy to do. That's why we have seen so many headline data breaches and hacks over the past few years as the cloud pivot has gained momentum. Thus, consumers are increasingly seeking a uniform cloud security solution. Unique Solution Gaining ShareOkta provides this uniform cloud security solution, and does so in a unique way.Okta is creating a new cloud security solution which allows enterprises to seamlessly secure information across all cloud apps at the same time. They call this solution the Identity Cloud.Essentially, this is a cloud solution centered on individual identity that allows millions of people across a corporate ecosystem to seamlessly, securely, and uniformly connect to the technological tools that the corporation is adopting. This may sound like a complex idea. It's not. Okta is simply creating an identity-driven security solution wherein controlled identity information is the only way in and out of a system.This is a big idea. Importantly, it's a big idea that gaining traction rapidly.A few years ago, Okta had about 2,000 customers and was doing $30 million in quarterly revenue. Okta closed fiscal 2019 with 6,100 customers on a $115 million revenue quarter. Further, the company exited 2019 with 50%-plus revenue growth rate and a 40%-plus customer growth rate.In other words, not only has Okta grown very quickly over the past several years, but it is still growing very quickly today, and hardly losing any steam. As such, it is clear to see that Okta's unique Identity Cloud security solution is rapidly gaining share in the cloud security market. Big Valuation Warranted Long TermOkta stock is trading at nearly 700-times projected profits that are still two years out. Thus, this stock is richly valued. But, is it overvalued? I'd say no, if you look at the big picture.Okta has just over 6,000 customers. There are over 100 million businesses in the world, all of whom could use Okta's Identity Cloud. Further, cloud spend is at $500 billion and growing. Okta's revenues this year are projected around $535 million.Thus, in the big picture, this company is very small relative to its market opportunity. Because of this, management's long term target for 30%-plus annualized revenue growth into fiscal 2024 seems very doable. Even thereafter, this company should be able to do 20%-plus revenue growth into 2030, as more companies pivot to the cloud and cloud security demand globally grows.Under those assumptions, this could easily be a $5 billion revenue company one day, and probably by 2030. Gross margins are sky high and projected to rise north of 80% soon. Meanwhile, opex rates are big, but dropping rapidly, and could fall towards 50% at scale. That means 30% operating margins are achievable. On a $5 billion revenue base, that implies $1.5 billion in operating profits. Assuming a normal tax rate and some growth in the share count, that could flow into $8 in EPS by 2030.Application software stocks normally trade at 35-times forward earnings. Applying that average multiple to $8, a realistic 2029 price target for Okta stock is somewhere around $280. Discounted back by 10% per year, that equates to a fiscal 2020 price target of just under $120. Thus, while Okta stock is richly valued, it isn't overvalued. Yet. Bottom Line on OKTA StockOkta stock has been one of the market's biggest winners over the past two years, and with good reason. This company is in the early stages of a really powerful long term growth narrative that will produce robust profit growth over the next several years.To be sure, a lot of this upside is already priced into Okta stock. But, not all of it. As such, while gains will be more muted going forward, this stock will remain on a medium to long term uptrend for the foreseeable future.As of this writing, Luke Lango was long OKTA, CRM, ADBE, AMZN, and NOW. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 7 Stocks to Buy for Over 20% Upside Potential * 5 Large-Cap Stocks Holding Steady Amid Trade War Concerns * 7 ETFs for Healthy Healthcare REITs Compare Brokers The post Okta Stock Is the Sleeper Cloud Play You've Been Looking For appeared first on InvestorPlace.
Adobe launched Premiere Rush, its newest all-in-one video editing tool that is essentially a pared-down version of its flagship Premiere Pro and Audition tools for professional video editors, in late 2018. The idea behind Premiere Rush is to give enthusiasts -- and the occasional YouTuber who needs to quickly get a video out -- all of the necessary tools to create a video without having to know the ins and outs of a complex tool like Premiere Pro. Premiere Rush is available for free for those who want to give it a try, though this "Starter Plan" only lets you export up to three projects.
Adobe (NASDAQ:ADBE) isn't just Photoshop and PDF documents anymore. Indeed, ADBE stock has been an investment in a digital marketing company since early 2017. That's when it debuted Experience Cloud and Advertising Cloud: two platforms that help organizations market and measure their online efforts.Source: Shutterstock It has been a solid success as a result too, if for no other reason than those offerings drive recurring revenue.The company just took its e-commerce arm to a whole new level though, partnering up with sector giant Amazon.com (NASDAQ:AMZN). The deal helps Amazon's third-party sellers cultivate relationships and manage their business better.InvestorPlace - Stock Market News, Stock Advice & Trading TipsMost fans and followers of Adobe acknowledged and respected the development. Not enough investors, however, seemed to fully appreciate the potential of this new offering for the ADBE stock price. Meet MagentoThe rise of third-party sellers on e-commerce platforms represented a hot button for years. But the matter came to a strange head last month when Amazon CEO Jeff Bezos lamented, "Third-party sales have grown from 3% of the total to 58%. To put it bluntly: Third-party sellers are kicking our first-party butt." * 7 High-Yield REITs to Buy (Even When the Market Tanks) The math is presumably correct, but the premise is misleading at best. Third-party sellers have never made up a bigger portion of Amazon's total sales than they do right now. However, they've also arguably never been more miserable about it thanks to their constant competition with Amazon's own retail-sales efforts.Amazon has been and continues to cheer "the little guy" using its sales venue, promising tools to better empower them. As it turns out, the company wasn't just blowing smoke. Its latest option does that and much more.The program is called "Branded Stores for Amazon Sellers." However, existing AMZN customers may recognize the new features look very similar to Adobe's Magento platform.Regardless of the wrapper and label, the results are the same: faster page-load times, better conversions, options to scale for online-shopping surges and one-click checkouts, just to name a few features. The platform also raises the profile of Adobe stock.Those niceties are secondary to what Magento's Branded Stores for Amazon Sellers ultimately delivers though. As Adobe's vice president of commerce product and platform Jason Woosley explains:Small and mid-market businesses are taking direct ownership over how they manage customer experiences to differentiate, grow and build loyalty. Our work with Amazon empowers this large community of sellers to get closer to their customers while saving them time and money on development. Relationship BuildingIt's a product development that cuts straight to the heart of a matter which has long frustrated several Amazon vendors. No matter how well the seller serves the customer, Amazon.com owns the relationship, and oversees the experience.Not any longer though. In an environment where would-be rivals like Shopify (NYSE:SHOP) are thriving explicitly because it's helping budding online entrepreneurs develop real customer relationships, Amazon is being forced to do the same.And Shopify is undoubtedly rattling Amazon's cage in this way. Shopify's director of product Michael Perry recently explained:The most important thing for entrepreneurs is to establish that direct relationship with their customers. Personally, I don't know why anyone would want someone else to own their customer relationship. Unfortunately, that's the exchange that takes place with a digital marketplace.It was a veiled jab at Amazon, but a well-deserved one. It's the new norm in e-commerce. Shopify has got several quarters of strong double-digit sales growth to verify it's this kind of platform that online retailers want.Adobe's solution is different than Shopify's though, in that Adobe's Magento isn't a one-stop-shop. Adopters can integrate Magento with multiple e-commerce venues.And it's already been integrated with another big one, as the partnership with Amazon isn't exactly exclusive. For instance, Alphabet (NASDAQ:GOOGL, NASDAQ:GOOG) now allows online sellers to manage their Google ad campaigns via Magento.It's hardly a threat (yet) to Amazon. But if Adobe continues to partner with anyone and everyone that wishes to take aim at Amazon.com, the half of the e-commerce market Amazon doesn't own could collectively make a dent in Amazon's dominance.And Adobe is more than happy to sell them their bullets. That bodes well longer term for the ADBE stock price. Bottom Line for ADBE StockIt's not necessarily a reason to step into ADBE stock, particularly right now. Shares are up 36% since their late-December low, and back within sight of record highs. The equity is vulnerable to profit-taking. This vulnerability is more pronounced in that Adobe stock never really burned off the froth of the 170% gain it reaped between the end of 2016 and September of last year.Besides, it's still the early innings for Magento's Branded Stores for Amazon Sellers, as well as for Magento's non-Amazon growth.There's little doubt as to the marketability of the new option for Amazon's third-party vendors, however, as well as for online retailers not using Amazon.com. It's one big step closer to the tool online sellers have been looking for.Therefore, it wouldn't be crazy to take a shot on ADBE stock on any decent pullback. The sentiment applies even before Magento has its full chance to make a fiscal impact.As of this writing, James Brumley did not hold a position in any of the aforementioned securities. You can learn more about James at his site, jamesbrumley.com, or follow him on Twitter, at @jbrumley. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 7 High-Yield REITs to Buy (Even When the Market Tanks) * 5 Great Blue-Chip Stocks to Buy Today * 7 Tech Stocks to Buy That Are Also Perfect for Retirement Compare Brokers The post ADBE Stock May Win the E-Commerce War … From Behind appeared first on InvestorPlace.
Adobe Systems (ADBE) closed the most recent trading day at $275.45, moving -1.57% from the previous trading session.
An Atlanta creative content agency plans to boost its workforce by 60% thanks to its recent venture capital funding.
Coatue Management is a New York City-based hedge fund that was launched back in 1999 by Philippe Laffont. The fund provides additional office in Menlo Park, California. At the end of 2016, it held around $10.25 billion in assets under management. Coatue Management looks for the stocks to invest in from the technology sector, utilizing […]
Nobody is questioning the business prospects of Adobe (NASDAQ:ADBE). But on the price chart, ADBE stock's longevity and top-dog status among the bulls is looking tenuous at best. Let me explain.Source: Shutterstock Wall Street loves Adobe stock. The analyst community collectively has 17 buys on the company behind ever-present products such as Photoshop, Acrobat and Illustrator. The staunch support has manifested itself into a median price target almost 6% above yesterday's $283.55 close.Want more? The Street's $340 high estimate is 20% removed from today's levels and 17% north of Adobe stock's all-time-highs set in early May. Mind you, those heady expectations are despite shares having enjoyed a rally of around 300% since 2016 and a massive return for its investors of about 1,650% over the last decade.InvestorPlace - Stock Market News, Stock Advice & Trading TipsAt the other extreme? Currently, there's not a single sell recommendation on Adobe stock.Most recently and backing the Street's enthusiasm, ADBE's CEO enjoyed a bit of cushy armchair talk on CNBC's Mad Money. The interview highlighted the company's enviable position within secular trends for design and creativity, emphasized Adobe's exposure to the trade war is "fairly minimal" and the outlook for 2019 looks strong. * 7 Cloud Stocks to Buy on Overcast Days And away from the cameras? Adobe's soon-to-be-released Photoshop Creative Cloud for the Apple (NASDAQ:AAPL) iPad is the latest innovative tool backing up the upbeat talk.Nevertheless, when I see a picture or chart illustrated like Adobe stock's below, there's good reason to be more cautious than carefree. Adobe Stock Monthly ChartClick to EnlargeWhat concerns me are indications of price and pattern weakness emerging on Adobe stock's longer-term monthly chart. A two-candlestick reversal formation centered on the 2018 all-time high is developing. This pattern is closing in on a bearish signal to short ADBE stock below April's low of $263.72. The formation also maintains a supportive, weak-looking stochastics set-up.At a minimum, for investors that have participated in Adobe stock's burly rally, confirmation of a top should be used for profit-taking as the chances for a much larger correction increases. Adobe Stock Short StrategyFor investors who are comfortable shorting, as mentioned, I'd wait for pattern confirmation as ADBE stock trades through $263.72. Using a pattern breaking stop-loss above $291.71 amounts to short exposure of about $28 or roughly 11% stock risk. * 7 Stocks to Buy that Lost 10% Last Week Alternatively, if a short in Adobe stock signals, a tighter exit above the September high of $277.61 equates to reduced risk of around 5%. That kind of price action could be enough of an indication our technical concern was misplaced.On the downside and if conditions allow for a top to play out, the "X" on the ADBE stock chart marks the spot or more aptly, 'illustrates' where I see the first layer of substantial support. This is backed by a key Fibonacci trend-line at the December lows. Shorts would also be looking at solid open profits versus the position's initial risk. As much, this area makes a good choice for taking partial profits or maybe even giving Adobe stock a second look for an entirely new position.Disclosure: Investment accounts under Christopher Tyler's management do not currently own positions in any securities mentioned in this article. The information offered is based upon Christopher Tyler's observations and strictly intended for educational purposes only; the use of which is the responsibility of the individual. . For additional market insights and related musings, follow Chris on Twitter @Options_CAT and StockTwits. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Cloud Stocks to Buy on Overcast Days * 6 Stable Stocks Worth Buying for Protection * 5 Active Vanguard Funds That You Have to Own Compare Brokers The post Donat Look Now, But Adobe Stock is Finally a Short appeared first on InvestorPlace.
DocuSign, the leader in electronic signatures, has barely tapped its total addressable market, and that means its shares have plenty of room to rally.
Despite overvaluation concerns, the U.S. technology sector has had a stellar rally in the period between 2010 and so far in 2019, also popularly known as the twenty-tens.
Adobe Experience Platform and Marketo Engage Combined with Software AG’s Technology Helps Companies Stitch Customer Data from Across Systems
There's nothing to be impressed about Nokia (NYSE:NOK) stock this year. It seems like nothing is going right. So far, the return on Nokia stock price is a miserable -17%, despite a strong bull move in the tech space.Source: Shutterstock But there is nothing new about this. Let's face it, Nokia stock has not had much traction for quite a while. Note that the average return for the past decade is -5.81%.Despite all this, might there still be a contrarian play here? Maybe the company's strategy is the right one? Hey, after all, we've seen slumbering tech gains like Microsoft (NASDAQ:MSFT) and Adobe (NASDAQ:ADBE) find ways to renew their businesses. And this has resulted in substantial gains for shareholders.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Forever Stocks to Buy for Long-Term Gains So, could there potentially be something similar with NOK stock? Granted, this may seem kind of laughable right now. The company has shown lapses in execution, as witnessed in its latest earnings report. Nokia posted a loss of 2 cents a share and revenues of $4.49 billion, while the Street was looking for a profit of 2 cents a share and revenues of $5.06 billion.But when it comes to transforming a company, the progress can be choppy. Competition remains tough and there are long sales cycles.However, NOK is still a much better company today, as it has done much of the needed heavy-lifting of cost cutting and restructuring to streamline operations. There have also been some major acquisitions, such as for Alcatel-Lucent.Yet, the most important potential catalyst is the emergence of 5G. As an indication of the importance of this trend, look at Apple (NASDAQ:AAPL). It appears that the key reason it settled its massive lawsuit against Qualcomm (NASDAQ:QCOM) was to ensure that the company has the necessary technology for 5G. This technology is a must-have.While mobile network transitions do not necessarily result in major demand for equipment, this time is likely to be different. Speeds for 5G are likely to be 100 times faster than 4G, which means there will probably be a surge in innovation. And this means more than just greatly improving smartphones. There will also be opportunities in categories like IoT (Internet-of-Things), gaming, education, autonomous cars and so on.To play in this market, there needs to be secure, reliable and scalable technology. And yes, NOK is one of a few companies that that has these capabilities with its systems.Another important factor: The US-China trade standoff. This means that the US will block out a fierce competitor -- mainly, China's Huawei.And finally, Nokia has a valuable patent portfolio. On the earnings call, CEO Rajeev Suri remarked that there will be continued strength from the portfolio that should provide "considerable monetization opportunities." Bottom Line on NOK StockThe move to 5G has certainly not been without its challenges -- and this should be no surprise. The technology is complicated and requires dealing with onerous rules and requirements. But as for NOK, management is still optimistic and believes that the second half of the year will see a pick-up in the business. There is also about 200 million in euros of revenues that are expected to be recognized during this period of time. * 10 Retirement Stocks That Won't Wilt in a Bear Market Something else: NOK stock is quite cheap at current levels, with the forward price-to-earnings multiple at 12 or so. Oh, and the dividend yield is an attractive 4.13%. This is among one of the highest in the tech sector.In other words, NOK stock does look like an interesting value play on the 5G opportunity.Tom Taulli is the author of High-Profit IPO Strategies, All About Commodities and All About Short Selling. Follow him on Twitter at @ttaulli. As of this writing, he did not hold a position in any of the aforementioned securities. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 10 Retirement Stocks That Won't Wilt in a Bear Market * 5 Consumer Stocks Ready to Push Higher * 3 of the Best ETFs to Buy for a Play on Gold Stocks Compare Brokers The post Nokia Stock Looks Like an interesting Contrarian Play Here appeared first on InvestorPlace.
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In his first "Executive Decision" segment of Tuesday night's Mad Money program, Jim Cramer checked in with Shantanu Narayen, president and CEO at Adobe Inc. Narayen said that Adobe's mission is still to help companies create content, attract customers and transact with them. When asked about their exposure to China and tariffs, Narayen noted that Adobe has minimal exposure to both and is benefiting more from the tailwinds of people everywhere creating more content than ever.