In this guide, we will provide you with the most comprehensive step-by-step guide on how to buy Adobe stock in 2023. We will also tell you all about the Adobe Inc. brand and the history of its share price. This share investing guide also teaches you where to buy Adobe shares, examines some of the factors affecting Adobe share price, and goes over reasons to buy or not buy Adobe shares.
How To Buy Adobe Stock – Overview
Here is an overview of the step-by-step guide on how to buy Adobe shares now.
- Step 1: Register a share investor account with a regulated broker – Start by creating a share investor/trader account with a reliable and regulated broker. Most of these maintain a free, often quick, and straightforward client onboarding process.
- Step 2: Verify your identity – All regulated share brokerages will demand that you furnish them with a copy of a government-issued identity document such as a passport, driving license, or national ID.
- Step 3: Fund the account – Once the account is approved, log in and deposit funds. Different brokerages have varied minimum initial deposit limits and also accept a wide range of payment options.
- Step 4: Search for the Adobe stock – After the funds reflect in your share investor account, choose to buy stocks and search for Adobe shares.
- Step 5: Buy Adobe stocks – Depending on your preferred broker, you will have to buy one whole share, but most allow fractional share ownership and allow you to buy the ADBE share with as little as $10.
Your capital is at risk. Other fees apply.
Let us now go over this Adobe stock buying process, detailing each step and trying to understand why ADBE stock is worth buying in 2023.
Adobe Stock Buying Process Reviewed
Step 1: Choose A Broker
The first step to buying Adobe stock – or any other stock – is creating a share investor account with a reliable and regulated broker.
You, however, must have noted that there currently are hundreds of share brokers operating in the country today. Choosing a broker boils down to extensively vetting these platforms to find one that appeals most to you.
But what factors should you look out for when finding the best share broker today? Here are a few:
- Regulation and reputation: Your preferred broker should be licensed and regulated by such top-tier agencies as FCA and SEC. It should also have a solid reputation for reliability, customer service, and efficiency.
- Trading costs: Your preferred broker should charge competitive trading and non-trading fees. These include commissions, spreads, deposit/withdrawal fees, overnight fees, and currency conversion fees.
- Intuitive trading interface: It is important that your preferred share broker maintains an intuitive and navigable trader interface that is easy to use for both beginner and pro investors.
- Premium research and trading tools: The said trading platform should also integrate a range of advanced market research, analysis, trading, and risk management tools.
To help you get started with buying ADBE shares, we have vetted multiple brokers and settled on the following two as the best places to buy Adobe shares in 2023.
eToro – Best Broker to Buy Adobe Stock
eToro is a multi-regulated and one of the most reputable online share trading platforms available today. This explains why it has earned the trust of 25+ million users all across the world. It also runs one of the most user-friendly trading platforms. This integrates educational content and advanced trading tools that draw in both beginner and expert investors. Plus, it gives all its platform users a chance to buy active shares or simply trade share CFDs with leverages of up to 1:5.
The multi-asset broker also maintains some of the most competitive trading costs. It doesn’t charge commissions on share trading and maintains competitive spreads and overnight fees (for leveraged trades). At the time of writing, for instance, the spread fee for trading Adobe Shares is currently 0.23% of the trade amount.
Additionally, eToro supports fractional share ownership and maintains an affordable minimum deposit/trading limit – of $10. And you don’t even need to be a skilled shares investor/trader to start buying and selling Adobe stock on eToro.
It has a copy trading tool dedicated to helping both pro and beginner traders earn passively. Beginner share investors get to make money by copying the trade strategies of successful pro investors. Popular investors, on the other hand, receive a commission from eToro based on the number of their copiers and the value of their trades.
Your capital is at risk. Other fees apply.
Capital.com – Best for Innovative Trading Interface
Capital.com is a pure-CFD multi-asset trading platform and one of the most popular online share brokerages. The multi-asset trading platform’s popularity has soared in the recent past thanks to its highly innovative trading platform. It has also scored massively with investors because it not only gives users access to a wide range of local and international stocks but for the speed with which it adopts newly-listed shares.
Like eToro, Capital.com is a no-commission broker. You, therefore, will only pay highly competitive spreads when trading Adobe shares on this platform. You can also open margined traded with leverages of up to 1:5. And these, too, are subjected to variable but highly competitive swap fees if they remain open overnight.
Capital.com trading platform is highly intuitive and easy to use for both beginner and expert traders. It boasts of maintaining some of the fastest order execution speeds. It also integrates 70+ technical indicators for market analysis, a host of educational materials, market research tools like news and economic calendars, and advanced risk management tools, including negative balance protection.
Even more importantly, the Capital.com trading platform is AI-powered. This is especially equipped with a post-trade behavior analysis tool that comes in handy in helping share investors identify and eliminate bias in their trades.
Your capital is at risk. Other fees apply.
Step 2: Research The Adobe Stock
After identifying the best share brokerage through which you wish to buy or trade ADBE shares, you now need to gather as much information about Adobe as possible.
You will want to learn everything about the company, the industry in which it operates, and its past price action. All these are relevant as they help you make important investing/trade decisions. They particularly help you identify the factors affecting ADBE share prices and interpret the impact that different industry/company happenings may have on ADBE share prices.
Most stock brokerage firms like eToro and Capital.com have a lot of information about Adobe. But you need to complement their research with your own analysis of the share, and you can get updated information about both the stock and company from such platforms as Reddit stocks.
Let us learn what Adobe is, how it works, and take a closer look at its financial standing.
What is Adobe Systems Inc.?
Adobe Inc, previously referred to as Adobe Systems Incorporated, is a US-based software development company. It specializes in the development and distribution of image editing, film production, desktop publishing, digital marketing, graphic design, and document management programs.
Some of its flagship products include Adobe Photoshop (an image editing software), Adobe Illustrator (a vector-based illustration software), Portable Document Format (PDF), Dreamwear (a web development app), InDesign (a massively popular desktop publishing program), and Adobe Acrobat Reader. All these have grown into industry standards for specific niches.
How Does Adobe Inc Work?
Most of Adobe’s software programs are availed to consumers in a subscription-based model. Originally, these programs were sold and marketed individually, but over the past few years, Adobe has sought to cement its position in the Software as a Service (SaaS) niche.
It has, therefore, grouped these programs and availed them to the market as a bundle. First, the bundle was referred to as the Adobe Creative Suite but was recently renamed the Adobe Creative Cloud. This a collection of close to forty software and applications packaged to appeal to individuals, businesses, and schools.
Adobe Stock Price History
Adobe was established in 1982 and is incorporated in Delaware, but it has its headquarters in San Jose, California.
At the time of writing, the company also maintains a physical presence in South America, Australia, Asia, and Europe. In all these locations, Adobe Inc has a workforce of more than 26000 employees and has appeared on Fortune’s “Top 100 Best Companies to Work For” for 21 consecutive years.
Adobe Inc went public in 1986 and is currently listed with the NASDAQ exchange in the US under the ticker symbol ADBE, and its current market capitalization stands at $155.4 Billion.
ADBE Stock History
By the time Adobe Inc shares hit the open share markets in August 1986, they were trading at 20 cents. Several factors, including a multi-decade accelerated growth of the technology industry and Adobe’s dominance of the creative software niche, have helped catapult ADBE stock prices to unmatched heights.
At the time of writing, the ADBE stock is selling for $326, representing a 148000%+ growth of the creative software stock over the last three decades. At its peak in November 2021, Adobe stock was selling for $698.
We must, however, observe that Adobe stock hasn’t always been this valuable. In the first two decades of going public, for example, ADBE traded well below the $50 mark. It only started rallying after 2013 and eventually tore above $100 in 2016.
This triggered its most aggressive price gain yet and more than tripled this value to reach $380 in early 2020. The Covid-19 pandemic triggered bearish sentiments however forced a slight correction for the ADBE – and the market at large – which saw it dip below $250 in March 2020.
By April of the same year, Adobe Inc. shares started signaling recovery and quickly resumed the 2016-2020 rally. By the third quarter of 2020, ADBE’s share price had already broken above $500 and oscillated around this price level until June 2021. It then broke into yet another maddening value gain – which culminated in the company’s current all-time high of $698 on 22nd November 2021.
Today, ADBE’s further uptrend has been halted by the ongoing bearish sentiments within the equity markets. These trace their roots to the disruption of the world economy occasioned by the covid-19 pandemic. It was, however, triggered by the ongoing Russian-Ukraine conflict that started in 2022, affecting the energy markets and pushing up global inflation – which in effect, triggered a rise in interest rates.
The bearish market outlook has been exacerbated further by the growing fears of an impending recession. Currently, as much as 70% of the leading financial experts are confident, there will be a recession in 2023. This has seen the equity markets plummet, with technology stocks being one of the most affected.
In the last six months, for instance, Adobe Stock has shed as much as 21% of its value and more than 51% in the last 12 months.
Read Also: Adobe (ADBE) Stock Price Prediction
Factors Affecting the Adobe Stock
Adobe stock has a beta of 1.19 – which means that it is more volatile than most other shares within the technology niche. But what makes it this volatile? What factors do ADBE investors consider when making the buy/sell decision?
We explore the six most common factors affecting Adobe share prices below:
- Company profitability: A company’s revenue growth – both total revenues and net income – plays a critical role in determining its competitiveness and sustainability. A sustainable company will, therefore, post significant and often steady revenue gains. In the last four years, for example, Adobe’s revenue has increased by more than 75%, which explains the 50%+ gains in ADBE share prices during the same period.
- Company’s financial standing: Adobe has a high quick ratio of 1.07 (which implies a company’s ability to settle all its liabilities in a short period – typically 90 days). It also has a relatively low debt-to-equity ratio. Both metrics are indications of a financially sound company and a key indicator that investors use to determine a company’s sustainability.
- Earnings per share: Adobe has a current P/E ratio of 32.2, which is lower than the US technology sector average of 46.2. This indicates that ADBE is slightly undervalued, and there is enough room for more value gain.
- Projected future performance: Investors also use expert opinions about a company’s future to decide if it is worth buying. Critical considerations when vetting a company’s future include the possible launch of new products, ventures into new markets, revamped marketing, or even a change in leadership. Note that positive growth potential props up share prices and vice versa.
- Industry performance: In addition to checking a company’s future, you also have to vet the future growth potential of the industry/sector in which it operates. In the case of Adobe, you have to check the future direction of the US software industry.
- Macroeconomic factors: You also need to consider the prevailing or projected national/global and economic conditions and the impact that they may have on the ADBE share prices. For instance, the ongoing Russia-Ukraine war, rising interest rates, untamed global inflation, and fears of an impending global recession have all negatively affected the markets. They have even contributed to a 51% decline in ADBE share prices.
Your capital is at risk. Other fees apply.
Step 3: Open An Investor Account And Buy Adobe Stock
Thus far, we have introduced you to the best share brokers to buy Adobe stock from. We have also told you everything you need to know about Adobe share performance and Adobe Inc. We now need to shift our attention to the actual process of buying Adobe stocks today.
Here is the beginner’s guide to buying your first ADBE share:
1. Start by signing up with a broker
Start by deciding the share brokerage that you wish to use when buying Adobe shares. This choice may be determined by such factors as whether you wish to buy actual Adobe shares, whether you fancy fractional share ownership and if you simply want to trade ADBE share CFDs.
A broker like eToro lets you trade any of these and maintains a quick client onboarding process. Simply the “Open New Account” on the official eToro website and complete the user registration form that pops up.
2. Verify your user ID
All regulated share brokers are required by law to put their clients through mandatory KYC and AML checks. Your preferred broker will, therefore, ask such questions as your income sources when registering a share investor account. They will also demand that you submit a copy of a government-issued identification document such as a national ID, passport, or driver’s license before they can approve your trading account.
3. Deposit funds
Once the share investor account is approved, log in and deposit funds. The minimum initial deposit will often be determined by your preferred brokerage. eToro, for example, asks that you deposit at least $10, while Capital.com requires a $20 deposit.
4. Find the ADBE stock
After the funds reflect in your share investor account, find the Adobe shares from the list of stocks supported by the brokerage.
5. Buy Adobe stock
Click on the ‘BUY’ icon against the ABDE stock. This will bring up the trading tab – on the edge of your desktop screen in the case of Capital.com or as a pop-up window using eToro. Use this tab to customize the trade by indicating the amount of cash you wish to spend on the trade or the number of ADBE shares you wish to buy. Then click ‘BUY” to execute the transaction.
Your capital is at risk. Other fees apply.
Adobe Stock Strengths And Weaknesses
But why should you even be considering buying Adobe stock in 2023? What are the cases for buying ADBE shares at the moment, and are there possible arguments as to why you shouldn’t be buying Adobe stock?
We analyze three arguments for buying and one for not buying below:
BUY: Investor confidence in ADBE
Even with its crashed price, the majority of PRO stock investors and analysts are still convinced that ADBE stock is a strong buy. In fact, only less than 2% of Adobe shares are currently shorted, which further proves the level of confidence the market has in Adobe’s future price action.
BUY: Solid financial standing
You may also consider investing in Adobe stock today because of its proven resilience – evidenced by overall uptrending price action since listing more than three decades ago. The company also has a solid financial footing – as evidenced by a high quick ratio and low DTE ratio – which prove its ability to withstand even the most volatile market downturn.
BUY: Expected rebound
You could also join ADBE’s strong hands by buying now and holding through the impending market recession. The fact that Adobe has shed more than 50% of its share value indicates that you are staring at a possible 200% capital gain when it eventually rebounds. We advise using the dollar cost averaging investment strategy as we expect ADBE to dump further in the coming months and throughout the recession period to grow your potential gains.
SELL: Looming recession
As we have mentioned above, we expect Adobe stock to dump more value in the coming months if the recession fears persist. Therefore, consider selling if you don’t want to see your ADBE shares lose more value. This also makes now the best time to short ADBE stocks. Proceeds of the sold stocks may then be directed to more recession-resilient stocks.
Your capital is at risk. Other fees apply.
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Your capital is at risk. Other fees apply.
Conclusion – How To Buy Adobe Stock In 2023
There goes everything you need to know about investing in Adobe shares. Here, we have broken down the how to buy Adobe stocks process, giving you a comprehensive detail of its share-buying process. We have told you where to buy Adobe shares and helped you gain a better understanding of Adobe Inc. as well as the factors affecting its share price. The guide even explored some of the reasons why you should consider buying the software stock today.
Do you want to jump straight to buying ADBE stocks? Start by registering a share investor account with a regulated broker like eToro, deposit funds, and start investing n ADBE shares.
eToro – Buy Adobe Stocks Today
Open an account with eToro, deposit some funds with USD, and finally – buy Shares from just $10.
Your capital is at risk. Other fees apply.
Read More:
FAQs About How To Buy Adobe Stock Today
Is the Adobe stock worth buying today?
Yes, several factors make Adobe shares one of the best stock investments today. These include its unmatched resilience, strong fundamentals, healthy balance sheet, and promising future.
How much do I need to buy the Adobe stock?
Adobe stock is currently trading around $380. There nevertheless, are multiple regulated share brokerages – like eToro – that will let you own a fraction of the share or start trading ADBE share CFDs with as little as $10.
Does Adobe pay dividends?
No, Adobe Inc. does not pay a dividend.