This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Standing Pat Sparks Adobe Shares

Shares of Adobe Systems (ADBE) jumped as much as 15% on Wednesday, demonstrating that, sometimes, no news is the best news.

The stock's rise followed the company's midquarter update Tuesday afternoon in which Adobe merely reiterated the forecast it gave in June. But for investors, worried that an expected sales trough might force the company to reduce its guidance, that was good enough.

Instead of worrying about the near term, investors can now focus on the future, says one buy-side analyst whose firm has no position in Adobe but who asked to remain nameless. Early next year, the company expects to release a new version of its flagship suite of software for creative professionals, which should boost Adobe's results and stock, the analyst says. That gives investors a reason to buy the stock again.

"In this market, people are freaked out about just about anything," says the analyst. "They don't want to be invested in anything without visible catalysts ahead of them."

Investors were definitely excited about Adobe following its update -- but in a good way. In recent trading, the company's shares were up $4.16, or 14.7%, to $32.50. Earlier in Wednesday's session, the company's stock traded as high as $32.58.

In its midquarter update, Adobe said it still expects to post a profit of 13 cents to 16 cents a share -- 25 cents to 27 cents excluding options and acquisition costs -- on sales ranging from $580 million to $610 million in its quarter ending Sept. 1. That matches the company's previous guidance.

The latest view from analysts was that the company would post a profit of 26 cents a share on sales of $593 million.

The outlook Adobe gave in June was below analysts' estimates at the time. Some had worried that the company might take its guidance down further.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,942.97 -17.60 -0.10%
S&P 500 1,975.08 -3.26 -0.16%
NASDAQ 4,436.0230 -13.5410 -0.30%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs