Adobe is a Top 15 rated Large Cap Stock pick in the Thirty Excel Stock Database.
Adobe released its 2nd Quarter earnings today (June 15) after market close. Adobe posted revenue of $4.82 billion which is up 10% from previous year. The revenue was also above Wall Street analyst projections of $4.7 billion.
Adobe is a leader in digital media content creation tools and its digital medial recurring revenue was $470 million in this quarter.
Adobe's management is very optimistic going forward as it indicated that 'generative AI will fuel the company's growth'.
Investors must feel the same way recently as Adobe soared to $508.30 after market hours. The stock has been on a rapid upswing over the last month. The stock was trading in the $350 range on May 15 and is up over 44% over the last month.
We are positive on the company as a long term holding, but the rapid move may present an opportunity to take a portion of profits or purchase downside protection. It is very much in the realm of possibility to see a pullback in the short-medium term in this position.
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