NEW YORK (TheStreet) -- Adobe Systems (ADBE) "delivered an incredible number" when it reported earnings on Tuesday, according to TheStreet's Jim Cramer, co-manager of the Action Alerts PLUS portfolio.
On CNBC's "Cramer's Mad Dash" segment, Cramer said that Salesforce.com (CRM), which reported a good earnings result as well, took the entire industry lower in February. The selloff lasted into the spring.
However, short-sellers were caught off guard in May, as shares of Adobe began to steadily climb higher into yesterday's earnings report, which pushed the stock even higher.
Cramer added that Adobe's management team made the decision to move its subscription model to the cloud. This was at a time when the stock was in the $30 range. Investors are beginning to see the transformation.He concluded that estimates and analysts' price targets are now being moved higher, causing shares of Adobe to do well. Currently, shares are up roughly 9%.
WATCH: More tech videos on TheStreet TV
-- Written by Bret Kenwell in Petoskey, Mich. Follow @BretKenwell United Leads in China but American and Delta Want Bigger Shares Larry Ellison Wants to Make Oracle King of the Cloud Dreamworks' 'Dragon' Sequel Slays Studio's Stock Price -- for Now Greenberg: The Tesla-izing of SolarCity?
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- 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 + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV