Adobe Systems Incorporated | $ADBE Stock | Shares Spike Down Despite Positive Earnings Numbers


Adobe Systems Incorporated (NASDAQ: ADBE)



Adobe Systems Incorporated (ADBE), a global software company yesterday reported their second quarter fiscal year 2016 financial results. Adobe reported second quarter earnings of $0.71 per share which beat analyst expectations of $0.68 per share. Adobe reported second quarter revenues increased 20.4% year over year to $1.4 billion which is exactly what analysts were expecting.


Adobe Systems Incorporated CEO and CFO Comments

“Adobe’s cloud solutions are powering digital transformation at the world’s biggest brands, educational institutions and government agencies,” said Shantanu Narayen, Adobe president and chief executive officer. “Our record revenue reflects our market leadership and the exploding demand for digital experience solutions.”

“Record revenue with strong profit and cash flow highlight our second quarter results,” said Mark Garrett, Adobe executive vice president and chief financial officer. “Based on our first half performance and momentum, we’re on track to meet or exceed all of our annual fiscal year 2016 targets.”  Business Wire


ADBE Technical Analysis

ADBE Chart

ADBE opened trading yesterday at $98.64 which was up from the previous days trading of $97.99. ADBE closed trading yesterday at $99.71 and slipped down after market to $95.37, equivalent to a 4% decrease from the closing price. Taking a look at the daily chart we can see the last time ADBE traded below these levels was on May 9th when it traded at $94.61 . Taking a closer look at the daily chart we can see that ADBE has been on a upward trend dating back to February 8th when it traded at its 52 week low price of  $71.27. ADBE has a float of 498.21 million shares and traded 2.22 times the normal daily trading volume on Tuesday. For trading purposes, I would like to see ADBE open trading on Wednesday below $96.80 and if it does I would be looking to take a short position at the bell. My stop loss would be $0.50 from my entry position fearing anything more than that and the stock would start to fill in the gap down.


Company Profile

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. This segment’s 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, and audience management solutions, as well as video delivery and monetization 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 eLearning 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 It also distributes products and services through a network of distributors, value-added resellers, systems integrators, independent software vendors, retailers, and OEMs. Adobe Systems Incorporated has a strategic partnership with comScore, Inc. The company was founded in 1982 and is headquartered in San Jose, California.  Yahoo Finance