Today’s Research Reports on Stocks to Watch: Adobe and Facebook
Adobe shares climbed higher on Tuesday as Wall Street celebrated the company’s preliminary guidance for fiscal 2019. Shares of Facebook also saw gains despite the social media company potentially facing a big fine over its data breach in September.
RDI Initiates Coverage on:
Adobe Inc. shares closed up 9.52% on nearly 8.5 million shares traded on Tuesday. Shares of the software specialist were rising after it provided preliminary guidance for its 2019 fiscal year. Adobe expects that overall revenue growth should come in around 20% compared to fiscal 2018. Subscription bookings are expected to rise at a 25% rate. The company is expecting to bring in about $1.4 billion in new net recurring revenue for the year. "Despite a few weeks of chatter about potentially light guidance in top line drivers like Digital Media ARR and Bookings, the company extinguished concerns," analysts for Stifel said in a note. "Adobe remains one of the preeminent vendors in the Digital Transformation space, having been one of the earliest movers in each of its core markets," Stifel continued. "Combined with strategic M&A, the acceleration of Digital Transformation projects from the [Small and Medium Business] segment to the Enterprise has contributed to the expansion of Adobe’s Total Addressable Market."
Access RDI’s Adobe Inc. Research Report at:
Facebook, Inc. shares closed up 3.43% on about 18.3 million shares traded on Tuesday. According to a spokesperson from the Irish Data Protection Commission, the social media giant’s security breach in September affected around 3 million users in Europe. This is now going to be the first major test for a European privacy regulation called GDPR where Facebook may see a fine of up to 4% of its annual revenue. The Irish Data Protection Commission is investigating the data breach. A spokesman for the office of the Irish Data Protection Commissioner said, "The update from Facebook last Friday, 12 October, was significant as Facebook has confirmed that the personal data of millions of users was taken by the perpetrators of the attack. The Data Protection Commission’s statutory investigation into the breach and Facebook’s compliance with its obligations under the GDPR continues."
Access RDI’s Facebook, Inc. Research Report at:
Our Actionable Research on Adobe Inc. (NASDAQ: ADBE) and Facebook, Inc. (NASDAQ: FB) can be downloaded free of charge at Research Driven Investing.
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