Image by Getty Images via @daylifeAdobe reported earnings in line with consensus, but reduced revenue forecast for the second quarter by $50 million due to projected weakness in Japan. Prior to the earnings, it did not take a genius to predict reduction in revenue projections in Japan for the next quarter ‘”after all post earthquake buying software and related services for the web is not a priority in Japan.
Adobe has already recovered post market swoon in the stock price.
Going forward, neither we nor anybody else has a sure way of predicting if smart money bullish on Adobe will prevail over the selling by not so astute investors acting on headlines. Should a significant drop in Adobe occur, we will add to our existing long position. Those already not in Adobe may open a new position in the buy zone.
Our long term target for Adobe remains unchanged at $47.
The computers at The Arora Report are monitoring every tick of Adobe and feeding the data into our proprietary algorithms. To help you prepare in advance for potential buying opportunities, we are providing the following zones :
‘¢FOR LONG TERM INVESTORS
‘¢FOR TRADERS
Stay tuned, we will issue buy alerts when the time is just right and the risk is lower than at the present moment.
