NEW YORK (TheStreet) -- Shares of Adobe Systems (ADBE) skyrocketed to close higher by 9% to $76.02 on more than four times its average trading volume, making it the top gainer on the S&P 500, after topping earnings estimates and acquiring stock photo service Fotolia.
The San Jose-based company beat Wall Street's estimates for its fiscal fourth quarter, reporting a profit 36 cents a share, higher than the 30 cents analyst expected.
Revenue was $1.07 billion for the period, ahead of analysts' forecasts of $1.06 billion.
Adobe also announced that it acquired Fotolia, a stock image and video company, for $800 million. The company says it plans to integrate Fotolia into its creative cloud subscription service, giving subscribers access to all of Fotolia's images and videos.
Additionally, TheStreet's Jim Cramer says that while the rest of the market is being dragged down by the collapse of oil, Adobe is defying the trend -- making it a stock to watch.
Separately, TheStreet Ratings team rates ADOBE SYSTEMS INC as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
"We rate ADOBE SYSTEMS INC (ADBE) a BUY. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its increase in net income, revenue growth, largely solid financial position with reasonable debt levels by most measures, good cash flow from operations and solid stock price performance. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity."