Adobe shares: Price analysis before buying or selling

Can I receive dividends when I buy Adobe shares?

No

ISIN code: US00724F1012

Ticker: NASDAQ: ADBE

Index or market: Nasdaq

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Elements to consider before selling or buying Adobe shares

Analysis N°1

The brand's efforts to expand into the market will of course be important elements to follow, as will the release of new innovative products.

Analysis N°2

Closely following the strategy aimed at targeting customer needs more precisely and currently in place at Adobe.

Analysis N°3

The computer industry as a whole will be a prime indicator to follow the Adobe stock, whose sales are closely linked to computer sales worldwide.

Analysis N°4

Takeovers from other innovative companies may also allow Adobe to expand the size of its product portfolio.

Analysis N°5

The absence of Adobe products for computers running Linux being a real problem for the group, the development of such a product will no doubt be an important and impactful event.

Analysis N°6

Criticisms of Adobe products can also damage the group's brand image and must therefore be taken seriously.

Analysis N°7

Finally, certain brands that prohibit Adobe from developing products for them is also an obstacle that must be taken into account. This was the case particularly with the Apple group.

Analysis before buying or selling Adobe shares

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General presentation of Adobe

The American group Adobe Systems is a software development specialist for the creation, publication and visual or digital distribution of content. However, it's important to divide its activity into several sectors according to the share of turnover that they represent.

The largest share of Adobe's revenue being 67.3%, is generated by digital media software such as creative, illustration, viewing and converting software as well as distributing digital content.

Next come online sales and business process management software which generate 29.7% of turnover with web publishing software, information security software, resource planning software, documentary production management software or application automation.

Finally, the remaining 3% of turnover comes from high definition printing software or online training.

Finally, it's also subscription sales that generate the most revenue, before product sales and services. The latter only represent 8% of the profits of the Adobe Systems Company.

The group mainly impacts the United States market, but also the Americas, Europe and the Middle East, Japan and Asia in order of importance.

Photo credits: ©photogearch/123RF.COM

The major competitors of Adobe

Let us now discover together a little more information about the environment in which the Adobe group evolves and more particularly, its main competitors on the current market with the largest software publishing companies in the world:

Microsoft Corporation

This company, founded in 1975, is an American multinational specialising in the field of information technology and is also one of the leaders in this field. It is also the number one software publisher in the world. Its core business is the development and sale of operating systems, software and related hardware.

IBM

Next is IBM or International Business Markets Corporation, which is also an American multinational company active in the fields of computer hardware and services, but also in software. This group was created by the merger in 1911 of the Computing Scale Company and the Tabulating Machine Company before becoming IBM in 1924. The group was also the world's largest market capitalisation for a long time.

Oracle

Of course, the Oracle Group is also a direct competitor of Adobe. It is an American company that has been in existence since 1977 and offers various types of software as well as a database management system called Oracle Database. The group also offers an application server, an enterprise resource planning system and a cloud computing offer. The company is still the second largest company in the software sector in terms of turnover and market capitalisation.

SAP SE

Finally, Adobe's competitors include the German group SAP, which specialises in the development and sale of software. It offers management and maintenance systems for companies and institutions throughout the world. It is also the leader in this field in Europe and number four worldwide. The company is headquartered in Walldorf, but also has other offices around the world, including in the USA.

The major partners of Adobe

Microsoft

In 2016 at the annual Ingnite convention in Atlanta, the Adobe group announced its partnership with the Microsoft group as part of their collaboration with Microsoft Azure platforms, Adobe Marketing Cloud and Microsoft Dynamics 365.

Reuters

In 2017, Adobe also partnered with Reuters, allowing it to offer a large library of photos and video footage provided by this news agency for news, sports and entertainment on its Adobe Stock software.

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The factors in favour of a rise in the Adobe share price:

Firstly, the Adobe brand has a strong image of reliability in the eyes of consumers, which enables it to build loyalty and win over many prospects.

Adobe also benefits from the fact that more than 98% of desktops on sale today incorporate one or more of the company's solutions, significantly increasing the reach of its customers.

Of course, the Adobe Group is also a group that is recognised as being particularly innovative, which makes its products particularly appreciated and sought after by user customers.

Through its many partnerships, Adobe has also had the intelligence to partner with digital media and data creation specialists. This gives Adobe a certain advantage with regard to its business customers and contributes to their loyalty.

Of course, the size of the company's payroll is also a measure of its success and the image of its success. Adobe currently employs no less than 9,000 people worldwide.

In addition to its flagship products, Adobe continues to innovate with major development activities in countries such as the USA, Canada, Germany, India, Romania and China. These countries are not chosen by chance as they are very promising in terms of future sales due to their habits and economic development.

The factors in favour of a drop in the Adobe share price:

First of all, it is regrettable that the Adobe group has not invested more in the development of solutions adaptable to Linux operating systems, which represents a part of the IT market today which, although minimal, is still significant. Indeed, to this day, Adobe still does not have any differentiated products capable of breaking into this operating system.

Still concerning the weak points of Adobe, one can also underline that some of its products remain relatively expensive to be able to sell in large quantities. This is the case for some software packages and creative solutions.

Finally, the functionalities that Adobe has invented and implemented are not really oriented towards customer satisfaction with a lower than average level of satisfaction.

The information supplied here is only for indicative purposes and should not be used without the completion of a comprehensive and complete fundamental analysis of this asset notably taking into account exterior data, future publications and announcements and all fundamental events and news that could influence the strengths and weaknesses or make them more or less significant. This information does not in any way constitute recommendations relating to the completion of transactions or a solicitation to buy or sell an asset.

Frequently Asked Questions

How is the capital of the Adobe Group divided among the various shareholders?

Currently, a large part of the Adobe Group's capital is free float and therefore freely traded on the market. But there are also large institutional investors, including The Vanguard Group with 7.69%, Fidelity Management & Research with 7.31%, SSgA Finds Management with 4.06%, Primecap Management with 3.40%, BlackRock Fund Advisors with 2.50%, Janus Capital Management with 2.39%, Putnam with 2.20%, Jennison Associates with 1.67%, Henderson Global Investors with 1.65% and Browman Capital Management with 1.65%.

In which regions of the world does the Adobe Group operate?

Of course, this American company is currently headquartered in the United States, more precisely in San José, California. But it is important to note that the group also operates development offices in Seattle, Washington; San Francisco and San Diego, California; Arden Hills, Minnesota; Noida and Bangalore, India; Ottawa, Canada; and Hamburg, Germany.

How do you know if Adobe stock will go up or down?

While there is no 100% certainty that the share price will go up or down, you can use various stock market analyses to try to anticipate its movements. Technical analysis, which uses chart indicators, is preferable to fundamental analysis, which is based on the most influential news and publications about the stock.

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Analysis before buying or selling Adobe shares