Adobe Inc (NASDAQ: ADBE) shares are down about 4.0% on Wednesday after it reported a blowout quarter, but CEO Shantanu Narayen warned that supply chain issues and a tighter labour market could weigh on performance in the upcoming months.
Cramer’s remarks on CNBC’s “Squawk on the Street”
Despite the sell-off that had the stock hit a new six-week low, Jim Cramer is convinced that it is an opportunity to buy the dip. He, however, recommends investors wait for a day (until Thursday) to start buying. On CNBC’s “Squawk on the Street”, he said:
You have to buy the stock between now and their MAX event, which is October 26th to 28th. But buy Adobe into this week, just not today because these sellers will try and make themselves look good today. So, buy it tomorrow morning.
Other reasons why Cramer likes Adobe include margins that continue to grow strong. Only one analyst is currently negative on the stock, while all others have raised their price targets.
CEO Narayen feels great about the future
Cramer acknowledged that it wasn’t a “typical Adobe blowout” but expects the stock to recover on a strong clientele that includes giants like Walmart and Facebook.
I like Shopify, they’re really good with the backend fulfilment for the smaller clients, but Adobe does it for the bigger.
The sell-off in Adobe was also attributed to recurring revenue from digital media, creative segment, and cloud business that barely topped expectations. CEO Narayen, however, told Cramer on Mad Money last night:
We feel really good about the quarter, we feel really good about the year, but more importantly, we feel even better about the future. People appreciate that we’re helping them not just with technology but also with processes. So, we’ll continue to do that in terms of innovation.
The post Jim Cramer: ‘buy Adobe into this week, just not today’ appeared first on Invezz.
from USA – Invezz https://ift.tt/3lNqKDU
Wajeeh Khan
Click here to Join RICH DAD SUMMIT online with ROBERT KIYOSAKI - $1 Training for Passive Income: https://bit.ly/RichDadSummitWealthTraining
0 Comments