Stocks to Watch week 24: Adobe, Oracle, and Red Hat

Stocks to watch: Adobe, Oracle and Red Hat will show their reports this week. Let’s see what is expected about them

Public companies in the United States are mandated by law to release their reports every quarter. This rule has led to support and opposition from the stakeholders. Many investors love the quarterly reports because they give them more details of the workings of the companies. Media pundits love them because they give them additional news. Opponents, who include corporate leaders hate the quarterly releases because they promote short-termism. They argue that three months is a very short period to analyze the performance of a company.

This week, investors will focus on the releases of Adobe and Oracle, which will report on Tuesday and Wednesday respectively.

5 tools that a trader must know

 

Adobe

Adobe is a technology company that became famous for productivity tools like Photoshop, Lightroom, and Acrobat. Today, Photoshop remains the biggest photo-editing software in the world while Lightroom is the biggest video-editing company. Acrobat is the biggest document-related software. In the past few years, the company has become one of the fastest technology companies in the world.

This is after it shifted its business from being a seller of software packages into a subscription platform. In the past, it sold software to customers for more than $100. Today, customers pay a subscriptions that start at $9 a month for Lightroom and Photoshop. A single app like Photoshop costs $20 a month while all apps go for $52 a month. There is another $82 package that includes stock photos.

This model has worked well for Adobe, which generated revenues of more than $9 billion. It has also diversified its business to include digital media and digital experiences segment. In this week’s earnings, investors expect the company to generate revenues of $2.7 billion and EPS of $1.78. The chart below shows the performance of Adobe this year.

Adobe second quarter chart

 

Oracle

Oracle will report on Wednesday and investors expect it to make revenues of $10.93 billion and an EPS of $1.07. As probably you just know, Oracle is one of the biggest software companies in the world valued at more than $182 billion. The company is famous for its database products, servers, enterprise management, middleware , business intelligence, search, and other applications.

In recent years, the company has increased its focus on the cloud industry, following the lead of other old tech companies like Microsoft and International Business Machines (IBM). In this week’s results, investors will focus on the headline revenue and EPS numbers, the guidance for the rest of the year, and the progress the company has made in the cloud sector.

Oracle second quarter chart

 

Red Hat

Another company investors will focus on is Red Hat, which will report on Thursday. The company is an IT provider that focuses on the open source market. The company is in the process of being acquired by IBM in a transaction worth more than $33 billion.

Therefore, investors will look at the results with the lenses of IBM, which will be its parent company in this second half of the year. The consensus estimate for the company is revenue of $933 million and an EPS of $0.87.

Red Hat second quarter chart

 

Other companies that will release their quarterly reports are Blue Prism, Wall Financial Corporation, and Cornerstone Building.

 

You want to start Day Trading? Download Free Guide › or Discover Our Platform ›

 

Other useful resources for this week’s Stocks to watch

IBM & Red Hat: Worldwide Market Shares – BusinessWire

Adobe on Yahoo Finance

Stock information about Oracle

 

Learn How to Trade, Trade Like a Pro & Make Money with DTTW

With DTTW's Technology, Trading Capital, and Risk-Management system, you can make money in day trading while managing your own business.

Accepted Payment Methods:

Payments accepted from DTTW™

Your ability to open a DTTW trading office or join one of our trading offices is subject to the laws and regulations in force in your jurisdiction. Due to current legal and regulatory requirements, United States citizens or residents are kindly asked to leave this website.

© 1997-2019 Day Trade The World™ All rights reserved.

Day Trade the World™ is a registered trademark of Select Vantage Canada Inc. 

Privacy PolicySitemap.

FEATURED DOWNLOAD:

Business Proposal eBook

  • Monthly profits (P&L) of our best partners
  • Detailed startup costs
  • Detailed ongoing costs
Download now ›
close-link