Buy Adobe Shares: The Ultimate Guide
Published: 5 November 2020 by Valentina
Adobe is the undisputed leader in digital media software. The company’s products are often seen as industry standards in their sector. They are used by millions of consumers, creative professionals, designers, and businesses around the world. Does then buying Adobe shares mean investing safely?
Well, not really, but we are certainly talking about a company with a good position in the corporate and professional field. Given that in the world of investments there are no certainties, before investing in Adobe shares, read this guide; you could change your mind… or maybe not.
An often overlooked factor when investing is the broker to use. They are not all the same, for example, a commission-free online broker can make the difference between a profitable trade and a loss, because trading fees can affect profits a lot.
We have compiled a short list of the best online brokers, where you can buy Adobe shares without paying commissions. By choosing eToro, you can also make automatic investments
Min. Deposit: 50€
Min. Deposit: 100€
Min. Deposit: 50€
Min. Deposit: 250€
Min. Deposit: 100€
72.30% of retail CFD accounts lose money
Min. Deposit: 250€
Buy Adobe Shares: Historical Background
Adobe was founded in 1982 by John Warnock and Charles Geschke.
By inventing the innovative PostScript computer graphics programming language, they leveraged their licensing revenue in order to create many of the computer standard graphic softwares used by businesses today.
PostScript was a revolutionary product in the technology industry. By 1985, Adobe had already sold $ 1.9 million of products, and by 1986, its revenue had hit $ 16 million with the entry in the NASDAQ.
In 1990, the company had total revenues of $ 170 million, of which its net income was $ 40 million. After 4 years, it had increased the income to $ 670 million.
Adobe has grown at a steady pace with the latest updates and best-selling products such as Adobe Acrobat, Adobe Flash, Adobe Dreamweaver, Adobe PageMaker, and many more. By 2010, the company achieved nearly $ 3 billion in sales revenue.
In recent years, Adobe has also expanded into marketing softwares that enable digital marketing campaigns and provide tailed analytics for the benefit of business users.
Now Adobe has exceeded 9 billion in revenue and has over 21,000 employees worldwide.
How to buy Adobe shares
We have mentioned that to buy Adobe shares it is better to use brokers without commissions: They are cheap, practical, and allow you to invest directly online.
But are they safe?
Not all of them, of course! But we only offer brokers which have a regular operating license, therefore, absolutely safe.
Online brokers allow you to trade on the markets through CFDs (contracts for difference).
These are contracts that have the same price as the stock they offer and allow you to invest up or down and earn (if the forecast is correct) in any market scenario.
Buy Adobe shares with the best brokers
To choose the best brokers to buy Adobe shares, an intermediary must have certain characteristics:
- Have a FCA, CySEC or equivalent license
- Offer the possibility of investing both up and down (short selling)
- Don’t charge commissions
- Request a minimum deposit not exceeding 250 euros.
Here are the services offered by the best brokers on the market: eToro, ForexTB and Trade.com.
eToro: Simplicity and Automated Trading
eToro is the most used broker in the world and its reliability is confirmed by over 7 million active users.
In the uK, eToro is authorized by FCA.
Here is a screenshot of the eToro trading platform showing Adobe shares.
To buy Adobe shares, just click on the “Trade” button, decide how much to invest in the operation and whether to buy or sell the stock.
Despite the apparent simplicity of the software, the most demanding traders will still be able to find the indicators they need for technical analysis.
Not all traders love technical analysis, however, some would prefer to invest automatically and it is precisely for them that eToro has patented the Copy Tradig.
This tool allows you to copy the market operations of the best traders in the world (on eToro) in a totally automatic and free way.
To use Copy Trading just follow these simple steps:
- Register on eToro
- In the section “people”, you can choose the traders to copy based on the performance.
- With a click, Copy Trading will copy exactly the same operations of the chosen traders in your account.
- At this point, you will get the same returns as these trading experts (of course, in proportion to your investment), without doing anything else.
Here are some of the best eToro Traders (which can be copied):
Both Copy Trading as well as traditional trading can also be tested on a free Demo account, without taking real risks.
For more details you can read our full eToro review.
ForexTB: Excellent Course and Free Trading Signals
ForexTB is fast becoming the reference broker for traders looking for an effective and free operational support.
This broker has attracted many investors also thanks to its two trading platforms:
- The web platform is easy to use and can be entered from any browser without downloading any software.
- Metatrader 4 is more technical and full of professional indicators and meets the needs of the more experienced traders.
Like the other brokers we are reviewing, ForexTB has a regular license, granted by CySEC.
Novice traders really appreciate the trading course that this broker offers for free. This is an ebook that explains the basics of trading in a very clearly and simple way. To download it click on the link below:
ForexTB offers real operational support with Trading Signals sent to all investors for free. These are very reliable indications, developed by Trading Central. To get them just follow the link below:
Trade.com: Free Training and Minimum Deposit
Trade.com has staked everything on convenience and training in order to emerge in the dense market of online brokers.
It also obtained the prestigious FCA license in the United Kingdom; therefore, it is a very reliable intermediary.
In this broker’s trading platform, Trade.com focuses on practicality and a very intuitive user interface. It is at the same time complete and easy to use.
Trade.com training begins with a trading course (in PDF) available for free. It explains the basics of online trading and technical analysis in simple language and can be downloaded from this official link:
The training continues with an educational area divided into 3 levels: Basic, Intermediate and Advanced. Thus, every investor will be able to find free information corresponding to his level of preparation.
Often low-capitalized traders are looking for a broker with a low minimum deposit and Trade.com has decided to satisfy this need by offering an entry threshold of only 100 euros.
Before depositing the money, you can practice with the platform in Demo, without risking anything. The Demo account is identical to the real one but uses virtual money.
Buy Adobe shares: Real-time quotes
Learning to use a software can be time-consuming, so once users get comfortable with a product, they tend to stick with it for years. At the same time, the Adobe brand has become synonymous with quality softwares.
These factors keep Adobe “protected” from the competition.
A few years ago, Adobe switched to a “rental” software model, which helps make its revenue (and profits) much more predictable.
Wall Street (the famous American stock exchange) responded to the move by bringing the share price to new highs. With plenty of room for growth, the trend seems to continue steadily.
In the meantime, Adobe has plenty of financial resources to face the COVID-19 crisis.
With more than $ 4 billion in cash and equivalents and steady cash flow (over $ 1.2 billion in the final quarter), the stock is continuing its run as if nothing had happened, as you can see in the image below.
The trend of the Adobe stock has been regular for more than 5 years and continues to reach new highs with a disarming consistency. While it is true that there are no safe investments, it is also true that Adobe shares give an impression of absolute solidity.
Is it worth to buy Adobe shares?
It seems that the coronavirus pandemic has failed to stop the use of company softwares.
While the economic slowdown undoubtedly has some effect on overall business spending, business softwares include key tools that all businesses, large and small, must use.
In fact, some companies may even benefit from the recession, as more and more companies are turning to digital tools in order to enable remote working and promote work efficiency.
Adobe has a very large market based on a diversified product portfolio including computer graphics, advertising, and marketing technology. If you still have doubts: Buying Adobe shares is worth!
The growth of this company is constant and the last few years have been particularly positive for the group, which is certainly an excellent equity investment, on which some famous traders are also betting.
Like all companies, Adobe also has competitors, but in some departments it has a dominant position that is very difficult to beat. Adobe’s main competitors are:
Buy Adobe Shares: Forecasts
Adobe said it expects slower-than-usual growth due to the persistent pandemic-related problems.
The third quarter revenue is expected to be $ 3.15 billion and adjusted earnings per share will be $ 2.40, with year-on-year increases of 11% and 17%, respectively.
Other software companies have reported many new customers who, due to the recent crisis, have increased the use of certain softwares, such as Zoom for video conferencing.
Regardless of Adobe’s size, this means that the outlook is very good for the stock.
Adobe is a long-term investment that should not be missing from a diversified portfolio of technology stocks. Some short-term slowdowns may happen, but completing the digital transformation of the workplace will take years and Adobe will be at the forefront.
Adobe is helping to drive this change and forecasts for the stock’s future include a “buy” rating agreed by leading trading analysts.
Adobe Target price
Analysts at the eToro Trading Desk have issued virtually unanimous purchase ratings for the Adobe stock. Their twelve-month Adobe share target price is $ 474.00.
Despite the extreme uncertainty between the coronavirus crisis and all the chaos that followed, Adobe (NASDAQ: ADBE) has officially released fantastic results for the second quarter of fiscal 2020 and this clearly shows the company’s future prospects.
Adobe is now part of many small and large companies around the world, which are unlikely to be able to replace it with somebody of the same level in the future. In addition, the new “subscription” sales system allows for constant and predictable income that makes growth even more stable.
The medium and long-term forecasts are on the upside for the Adobe stock, while in the short, due to the crisis linked to Covid-19, there could be some shaking.
- Practice the eToro Demo account for free by clicking here
- Register for free on ForexTB and access the Demo account from this link
- Access the Trade.com Demo account for free from this link
To buy Adobe shares it is best to use CFD brokers that allow you to invest without paying commissions.
Yes, but to find out which trading strategy to adopt, read our guide.
eToro is the most suitable online broker to buy Adobe shares and also allows you to make automatic investments.
The 12-month target price of Adobe is $ 474 per share.