Why Adobe Stock Is Rising Premarket Today
Synopsis
Adobe is expected to report adjusted earnings per share of $5.18 for the third quarter of the fiscal year 2025, and revenue of $5.91 billion.
Adobe, Inc. (ADBE) shares were about 0.7% higher in Thursday’s early premarket trading as the document processing software and tools provider prepares to release its quarterly results.
On Stocktwits, retail sentiment toward Adobe stock remained ‘extremely bullish’ (91/100) by early Thursday, while the message volume on the stream picked up pace to ‘extremely high’ levels.
A bullish user inquired whether the stock could reach $500. It closed Wednesday’s session down 1.10% at $350.16.
Another user said they took a small position in the stock and waited to see if the earnings could reverse the stock.
Adobe stock is down over 21% this week, even as the tech-heavy Nasdaq Composite Index traded at new highs.
According to Fiscal.ai-compiled consensus, Adobe is expected to report adjusted earnings per share (EPS) of $5.18 for the third quarter of the fiscal year 2025. Revenue is expected to be $5.91 billion. This would mark year-over-year (YoY) increases from $4.65 and $5.41 billion reported for the year-ago period.
Wall Street analysts took down their price targets for Adobe stock ahead of the quarterly report, according to the Fly. Among the downward adjustments are:
- Oppenheimer: to $460 from $500; rated an ‘Outperform’
- RBC Capital: to $430 from $480; rated an ‘Outperform’
- Mizuho Securities: to $460 from $530; rated an ‘Outperform’
- UBS: to $400 from $430; rated ‘Neutral’
Oppenheimer analyst Brian Schwartz said in a report released earlier this week that the bar is low going into the earnings print, and Adobe’s valuation reflected a lot of bad news. The analyst stated that the company would not disclose any material financial or product information in its third-quarter report and would reserve it for its MAX customer conference in October. At the same time, the firm sees limited downside as multiples were at five-year lows.
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