Cloud-based application and computing names have been strong in 2018, and Adobe Systems has led the way. Powered by strong earnings and subscription growth, the company has transformed itself into a high-flying cash machine with an incredibly strong niche in this competitive industry. The chart tells the story.
Note the strong uptrend of higher highs and higher lows, an envious, bullish pattern. The MACD has been positive, while last week’s breakout on higher turnover was a big moment for the stock – it hit new, all-time highs. Though Monday was a downer day (as it was for all tech companies), note the loss was on much lower turnover.
If the market pulls back, the stock would likely retreat to the 50 ma – and that could be a great buying opportunity. If this doesn’t happen, look for a move past the old highs very soon.
Love what you’re learning in our market analysis? Don’t miss a single video! Get the latest chart action delivered directly to your inbox every week as Bob breaks down stocks to watch and potential trade options!
About Adobe Systems
Adobe Systems Incorporated operates as a diversified software company worldwide. Its Digital Media segment provides tools and solutions that enable individuals, small and medium businesses, and enterprises to create, publish, promote, and monetize their digital content. Its flagship product is Creative Cloud, a subscription service that allows customers to download and install the latest versions of its creative products. This segment serves traditional content creators, Web application developers, and digital media professionals, as well as their management in marketing departments and agencies, companies, and publishers. The company’s Digital Marketing segment offers solutions for how digital advertising and marketing are created, managed, executed, measured, and optimized. This segment provides analytics, social marketing, targeting, media optimization, digital experience management, cross-channel campaign management, audience management, and video delivery and monetization solutions to digital marketers, advertisers, publishers, merchandisers, Web analysts, chief marketing officers, chief information officers, and chief revenue officers. Its Print and Publishing segment offers products and services, such as e-learning solutions, technical document publishing, Web application development, and high-end printing, as well as publishing needs of technical and business, and original equipment manufacturers (OEMs) printing businesses. The company markets and licenses its products and services directly to enterprise customers through its sales force, as well as to end-users through app stores and through its Website at adobe.com. It also distributes products and services through a network of distributors, value-added resellers, systems integrators, independent software vendors, retailers, and OEMs. The company was founded in 1982 and is headquartered in San Jose, California.