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%.
-- Written by Bret Kenwell in Petoskey, Mich.