NEW YORK (TheStreet) -- TheStreet's Jim Cramer is keeping an eye on shares of Adobe Systems (ADBE) as the software company prepares to post second-quarter results Tuesday after the market close. Adobe stock closed at $78.90 Monday.
Cramer said the company's transition from non-cloud to cloud has been good until recently, when business got a little rocky. He said he cares about this because cloud stocks are still the latest hope in technology.
Cramer said that if we see Adobe do well because of wide adoption of the cloud, a lot of other stocks do well. Rival software-as-a-service and cloud company Salesforce.com (CRM) is very important, Cramer noted. Plus, Red Hat (RHT) is reporting earnings later this week.
Adobe is expected to report earnings per share of 45 cents and revenue of $1.15 billion for the quarter. That would be a year-over-year increase of 21% on earnings and 9% on revenue. Last quarter, the company posted earnings that were in line with expectations.
The San Jose, Calif.-based tech company is focused on growing its creative cloud and cloud services segment to 6 million paid Creative Cloud subscribers by the end of 2015.
On Friday, RBC Capital raised its price target on the stock to $88 from $83, while maintaining a sector perform rating. Adobe stock's 52-week low was at $58.51, and its 52-week high of $80.74.
Adobe currently has an average analyst rating of buy and a consensus price target of $86.55. Known for its Photoshop software and Acrobat document reader, Adobe sells a variety of multimedia products and services.