Adobe Inc (ADBE)
BY Chris Andreou
|June 15, 2021Trade the world’s leading provider of creative apps.
Best known as the creator of Photoshop and the video editing software Premiere Pro, Adobe Inc operates as a diversified software company worldwide.
The company develops tools for individuals, teams and enterprises to create and publish digital content. It primarily serves content creators through its flagship Creative Cloud subscription service, which lets customers download and access the latest versions of its creative products.
Its Digital Media segment serves content creators, web designers, web & app developers, creative arts enthusiasts, students, social media creators, and a wide range of creative professionals.
The company also operates a Digital Experience segment, which offers products and solutions for publishing, tracking, monetising, optimising and analytics.
Adobe Inc was founded in 1982 as Adobe Systems Incorporated and is headquartered in San Jose, California.
Why Do Companies Value Adobe, and Which Products Does It Develop?
Creativity is an increasingly valuable asset that enterprises use to set themselves apart. According to research by Forrester, creative organisations grow at a rate 2.6 faster than their rivals. That’s why Adobe’s products, like Photoshop and Premiere Pro, are so powerful and in such high demand – they are the industry standards for image and film editing.
Let’s take a quick look at some of the products developed by Adobe.
Photoshop
Arguably the most well-known Adobe product, Photoshop is the industry-standard software for image editing – so much so that the word “Photoshop” has become a word meaning to edit an image, just like the word “Googling” means to search for something on the internet.
Illustrator
This Adobe product is much more focused on specific tasks. It’s essentially a drawing programme, and as the name suggests, Illustrator is mostly used by artists, graphic designers and illustrators to create everything from simple vector graphics like logos and icons to complex illustrations.
Premiere Pro
Premiere Pro is a complete video editing tool, based on the traditional editing style of a visual timeline. It is widely used by film and TV production crews, and by bloggers, YouTubers and design studios, to edit music videos to movies and TV series.
Adobe Spark
Adobe Spark is a free suite of apps for creating social media graphics, web pages, short videos and other types of media, easily and quickly. It is targeted at marketing and social media professionals, as well as amateurs and enthusiasts who want to create artistic content for social media, without devoting hours to more complicated tools such as Photoshop, Illustrator or Premiere Pro.
InDesign
InDesign is the industry-standard tool for the print publishing industry. It is primarily a page layout tool, and is typically used by graphic designers and artists to create magazines, brochures, newspapers, books and posters.
What factors influence the price of Adobe Inc (ADBE)?
Several factors can influence the share price of Adobe Inc (ADBE).
Appetite From Enterprises
Enterprises are increasing their rate of adoption of digital solutions. The International Data Corp. estimates that between 2020 and 2023, businesses worldwide will spend $6.8 trillion on digital transformations. This trend should continue to provide a strong tailwind for Adobe Inc in the years ahead.
Innovation
Innovation is another key element when analysing this stock. Traders should closely monitor the advancements the group is making in the areas of software and technology.
Adobe continues to innovate and expand its portfolio of products. It has recently placed a strong emphasis on developing mobile as well as artificial intelligence. Adobe recently released Photoshop Camera, a smartphone app that provides a wide array of AI-powered features and filters.
Adobe has also recently developed Adobe Aero, which lets artists design in augmented reality.
Finally, Adobe Sensei is an AI framework that is built into many of Adobe’s products, which helps creatives automate tasks to work more efficiently, and helps marketers personalise web and app content via predictive analytics.
These constant innovations have allowed Adobe to maintain a strong demand for its products.
Company Growth
Traders of ADBE stock should pay attention to the company’s recent financial results.
Adobe’s revenue is growing quickly, and if the company can maintain this momentum, it should gain even more market share in the years ahead.
Free cash flow is also growing more quickly than its revenue, meaning the company is becoming increasingly profitable.
Several factors are driving the increase in revenue and profitability, including the increase in subscriptions and the increase in the number of its customers who use three or more products.
How can I trade Adobe Inc (ADBE)?
Adobe Inc is a tradable asset under the ticker ADBE on TIOmarkets MT4 or MT5.
Like all other assets listed on our platforms, you can choose to go long or short on ADBE.
You can also trade the NASDAQ 100 index (NAS), which includes ADBE as a constituent company.
What are the best trading conditions for Adobe Inc (ADBE)?
As we’ve seen with the recent pandemic, the stock markets can be prone to large swings up or down based on economic turmoil, recovery and economic conditions.
Trade protection: Using risk tools like TIOshield (only available at TIOmarkets) can help to protect your trades against sudden breaking news that may swing the markets one or another.
TIOshield lets you cancel any trade within 1 hour to get all of your margin back.
Execution speeds: Slow order execution speeds can lead to a big difference between the price you see when you click to open a trade, and the actual price your order is opened at. This difference between prices is called “slippage”.
At TIOmarkets, we have some of the fastest execution speeds you can find, resulting in minimal slippage and more orders filled at the price you clicked.
Leverage: Normally, a large amount of starting capital is required to invest seriously in stocks and indices, because only a small amount of stocks is not likely to yield the kind of results most traders are seeking.
High leverage can greatly increase both the risk to your investment and the potential returns.
If you are comfortable with a high level of risk in return for higher potential gains, you may want to seek a leverage ratio that is commensurate with your investment goals.
Trade Safe
Janne Muta
Chief Market Analyst
TIOmarkets
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