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Adobe (ADBE) stock rises 2% as earnings report looms

By Monte Stewart


An Adobe logo displayed
Adobe stock rose more than 2% Wednesday. - Photo: Shutterstock

Adobe’s stock climbed 2.5%, up $15.47, to $630.33 Wednesday as the cloud computing company prepares to deliver its quarterly earnings report.

The rise came one day after the stock suffered its second-worst day of the year, falling about 7%. San Jose, California-based Adobe will deliver its fourth-quarter 2021 earnings report Thursday before markets open.

Cowen & Company analyst Derrick Wood expects the digital media company’s enterprise business to be a report highlight.

Enterprise business expected to shine

“We think enterprise is set up for a stronger (fourth quarter), which should drive a solid overall (quarter),” wrote Wood in a client report that he provided to

Wood said Adobe’s fiscal-year 2022 projections will be analysts’ main focus. He anticipates that, in keeping with past conservative practices, Adobe’s revenue and margins projections will be slightly below Wall Street expectations.

Based on Cowen partner survey, he expects slightly weaker performance versus the third quarter.

Wood anticipates that Adobe will boost annual recurring revenue (ARR), a closely watched metric, 2% year-over-year to $560m (£419.32), and a mid-single-digit boost from the previous quarter’s 3% beat, which was impacted by greater summer seasonality.


16,080.90 Price
+0.500% 1D Chg, %
Long position overnight fee -0.0262%
Short position overnight fee 0.0040%
Overnight fee time 22:00 (UTC)
Spread 7.0


44,001.35 Price
-1.360% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 22:00 (UTC)
Spread 106.00

Oil - Crude

71.41 Price
+2.320% 1D Chg, %
Long position overnight fee -0.0204%
Short position overnight fee -0.0015%
Overnight fee time 22:00 (UTC)
Spread 0.030


0.67 Price
-0.380% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 22:00 (UTC)
Spread 0.01168

But he expects fiscal-year ARR to be slightly below Cowen’s estimated $1.98bn.

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EPS could be estimates

Wood suspects that Adobe’s fiscal-year 2022 share-price projection could beat Cowen and Wall Street estimates. Cowen predicts adjusted earnings per share (EPS) of $13.99, while the Street projects $14.28.

Analysts polled by Dow Jones anticipate adjusted EPS of $14.26.  

On Tuesday 14 December, Morningstar downgraded its rating for Adobe to neutral.

Read More: The Fed doubled tapering pace as inflation rises

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612.05 USD
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The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
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