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How to buy Adobe shares
This page explains the essential things you need to know about Adobe. This includes the company’s recent market performance, its business fundamentals, and the things that affect its share price.
Compare the best Adobe trading platforms
If you know everything you need to know about Adobe already, just click one of the links below to sign up with a leading broker. We have used each of these services extensively to make sure they fulfil your expectations. For more on Adobe, scroll down this page.
How to buy Adobe stock, a step-by-step guide
Starting on the stock market is a simple task, even for an inexperienced investor. We have broken the process down into the easy-to-follow steps you need to take to make an investment.
- Choose a broker. In order to get Adobe stock, you will need to use an online brokerage platform. There are many different options to choose from, each with its own unique benefits and drawbacks. The comparison table above can help you select the right broker for you, and you can head to our comprehensive broker reviews if you’re still unsure, or check out our apps page.
- Create an account. Once you’ve selected your broker, simply go to their website and create an account. The steps required for this will vary from platform to platform, but generally, you can expect to have to provide your name, email address, phone number, and some form of photo identification.
- Deposit funds. Log into your broker account and select the option to deposit funds. Depending on your broker you’ll have a variety of payment options available; most brokers accept bank transfers and debit card payments, but not all accept e-wallets such as PayPal. Select your preferred payment method and deposit the amount of money you wish to invest in Adobe shares.
- Place an order for ADBE stock. Now navigate to the broker’s buying stocks page (a link to this can be found in the menu on the website). Here you’ll be able to search for Adobe’s ticker symbol (ADBE) and see the current price at which the stock is trading. If you’re happy with the price, enter the number of shares you wish to buy and place your order.
- Execute your order. Once you have placed your order, your broker will automatically execute it for you and your Adobe shares will be listed in your account. Congratulations, you’ve just bought shares in Adobe!
What is Adobe? And should I invest?
Founded in a garage in Delaware by John Warnock and Charles Geschke in 1982, Adobe is a multinational computer software company that is responsible for some of the most popular products on the market. These include photo-editing software, Photoshop, publishing and typesetting application, InDesign, vector graphics editor, Illustrator, video-editing software, Premiere Pro, video effect editor, After Effects, and signature solution, Adobe Sign.
The company went public way back in 1986 and was listed on the Nasdaq Stock Exchange. Its original success has its roots in the early stages of the internet when it pioneered technologies like the PDF in 1993 and Adobe Flash in 1995, which was a multimedia player. With around 22,500 employees in numerous countries, it has become one of the world’s largest tech stocks.
Adobe does not currently pay a dividend, and it is regarded as a large-cap momentum growth stock. This means it is heavily affected by broader market movements, though it has experienced corrections much less than similar stocks and is generally quite stable. Moreover, the fundamentals that underpin its value are strong and it has few rivals.
How has the company performed in recent years?
The company’s share price has been on the up for most of the last 5 years, and Adobe is now worth 400% more than in 2016. This growth has been generated by consistently increasing revenue, up to $12.87 billion in 2020, triple what it was just 7 years ago. Some investors feel the global push towards digitisation will further accelerate Adobe’s growth in the coming years.
Moreover, its success becomes even more obvious when you consider that over 2 billion devices have installed Adobe Reader or Acrobat as PDFs have become prevalent. From the Adobe Creative Cloud for creatives, to the Document Cloud for businesses, to the Experience Cloud for marketers, Adobe’s variety of products means its profits could rise as use cases increases.
An especially encouraging thing to consider is that Adobe has been around for over 40 years. One might expect to see sporadic success from a lesser company, but this kind of sustained growth can only occur when the foundations of a company are solid. It has managed to stay relevant for decades, and there seems little doubt this will continue.
Is it a good time to buy Adobe shares now?
This depends on what kind of investor you are. If you are a long-term investor, you should conduct extensive due diligence on the company and its current valuation. If you choose to buy shares, you will then be hoping that Adobe’s suite of products can gain even more momentum in the future, driving growth. Adobe is currently around its 2021 peak, so you need to decide if you think this is good value.
If you are more of a share trader, you may want to consider buying Adobe stock through one of our brokers and selling it to profit from market fluctuations. In this instance, the long-term value proposition of the company becomes less important than the current status of the market, specifically, the wider software and tech sectors.
No matter what strategy you employ, it is a good idea to keep up to date with the latest developments in the market that concern the company. With that in mind, feel free to check out one of our most recent analyses below:
4 Tech Stocks to Buy Amid The Coronavirus Selloff
Buying, selling and trading Adobe shares for beginners
What to do before buying shares
You should always take the time to research a stock fully before investing your money, especially if you haven’t bought shares before. The more knowledge you have, the better your chances of making a wise investment.
With that in mind, here’s a checklist to run through before investing in Adobe shares.
- Research the company. You should always examine the fundamentals of a company before buying its stock. What is Adobe? How did the company get its start? How did it grow? Is Adobe’s revenue and profit growth picking up? Is the company innovating? The more you know about Adobe, the better positioned you’ll be to make smart investment decisions.
- Make sure you understand the basics of stock investing. Before you start investing in the stock market, make sure you have an understanding of how it works. This will ensure that you have more clearly defined goals and have thought through how you will achieve them.
- Decide between share dealing and CFD trading. Choose the type of investment strategy you want to pursue, and make sure you have carried out the necessary fundamental or technical analysis for share dealing and CFD trading respectively.
- Set the size of your budget. The golden rule of investing is never to risk more than you can afford to lose. Not every investment you make will result in a profit, so it is important to set a budget that not only allows good potential for capital growth, but also protects against overly damaging losses.
- Find the right broker. Individual brokers each have their own pros and cons. Some will have low fees but have a user interface you struggle to understand, whereas others may be a bit more expensive but come with a range of features that you want to take advantage of. Use our broker reviews to find the right platform or app for you.
- Examine broader market conditions. No stock exists in a vacuum, and it’s always important to analyse the general trends of the stock market as a whole before investing. If a bear market is setting in and stock prices are falling, it’s best to wait it out and invest your money later when the stock is cheaper. While if the market is looking bullish, you’ll want to make your investment quickly to get the maximum benefit from rising stock prices. Follow the news to stay on top of the financial markets.
What is the difference between buying, selling, and trading shares?
If you’re new to stock investing, then it’s important to understand the basics of how to buy, sell, and trade Adobe shares. Here’s a quick run-through of what’s involved in each.
This process involves finding a broker and placing an order for Adobe stock, as outlined in the steps further up this page. Ideally, you want to time your investment when the stock’s price is low so that you can profit by selling the shares after they increase in value.
When you sell any Adobe shares you have bought, you’ll want to do so at a higher price than the one at which you bought to earn a profit.
When you sell is up to you. You might decide to hold for the long term, hoping to benefit from the company growing steadily throughout. Or, if you see that Adobe’s stock is already up a lot compared to the price you bought it and you’ve noticed that the stock market is starting to fall, it might make sense to sell and take your profits to invest elsewhere. Equally, if the stock has fallen since you bought it and looks set to fall further, it might be a good idea to cut your losses by selling your shares.
Trading is the same process as buying and selling shares, it’s just done over shorter periods of time with the aim to make small profits on a regular basis. This means that you can make money faster and spend your profits in your day-to-day life – however, on the other side it means you can lose money faster as well. For inexperienced investors, we generally recommend making investments for at least 6 months to a year instead of making trades in quick succession.
You can trade Adobe shares through buying and selling shares, or by trading with CFDs. These allow investors to speculate on stock prices and trade with leverage in pursuit of bigger gains. CFDs trading is explained further in the next section, but it is worth noting that beginners should avoid trading with leverage. It comes with large risks and is best left to experienced investors.
Share dealing v CFD trading
When it comes to investing in any stock, the two options you have are share dealing and trading. Which one of these methods to opt for largely depends on your investment timeline, with investors thinking long term tending to go for share dealing, and those looking for short term gains pursuing a more aggressive trading strategy.
Here’s a quick summary of the two approaches, and the pros and cons of each.
Share dealing refers to the practice of buying and holding shares in a particular company over the long term. When investing like this, you’re seeking to profit either from dividend payments or an increase in the stock’s price over time.
When investing your money this way, it is important to do a thorough fundamental analysis of the company in which you are investing. You want to put your money in a stock you believe will trend upwards over time, even if there is some market volatility along the way, rather than get distracted by shorter-term peaks and troughs.
- Can build wealth over time to achieve financial goals
- Don’t need to be very reactive to short-term market movements
- Some stocks will give you an income through regular dividend payments
- Takes a long time to realise any profits
- Your capital is tied up in stocks and cannot be used for other investments
If your aim is to generate profits in the short term, then you might be better off trading shares than holding them in your portfolio. Stock trades like this are executed using CFDs (contracts for difference), which allow investors to trade against the value of a stock without having to take ownership of it. When CFD trading, investors are looking to buy and sell stocks fast to profit from short-term fluctuations in value.
One aspect of CFD trading that many investors find attractive is that they allow you to trade with leverage. This means you can place large trades while only putting up a fraction of the value yourself – for instance, if a platform offered leverage of 1:10, you could put £10 into ADBE shares and be able to trade £100 worth. This can maximise profits if the market moves in your favour, but be careful as it can also lead to heavy losses.
When trading using CFDs, it is key to be skilled at technical analysis and reading stock price charts. As you’re trading stocks quickly and frequently, the fundamental strength of the company in which you’re investing isn’t as important as being able to predict how its stock price will rise and fall minute-by-minute.
- Can generate fast profits if you read the market right
- Some platforms allow you to trade with leverage
- Prevents your capital being tied up so you can take advantage of investment opportunities
- Trading with leverage is risky and can lead to big losses
- Doesn’t necessarily generate growth over the long term
Consider which approach suits you best and craft an investment strategy that works for you. If you need more information, use our trading course and read our guide to CFD trading to get you up to speed.
If neither of these options appeal to you, then you can find a variety of other ways to invest in ADBE stock on this page. Simply select one of the brokers in the table above and get started.
How to choose a broker
A broker is the best place to buy Adobe shares. With the wide variety of online trading platforms available these days, it can be hard to figure out which is the best service to go with. Our comparison table and in-depth reviews can help you cut through the noise, but by and large these are the aspects you should be considering when selecting a broker:
- Range of stocks available. The most important thing is that you can actually use the broker to buy the shares you’re looking for. Some brokers offer more stocks than others, and many will allow you to trade other assets, such as cryptocurrency and commodities.
- Fees and commissions. You want to keep as large a chunk of your profits as you can, so it’s important to make sure your broker doesn’t charge high fees that can eat into your profits.
- Regulation. You should only use regulated brokers to place trades and buy shares. Unregulated brokers can be risky and offer little to no protection if the business were to fail while you had funds in your account.
- Payment methods available. You might want to use a specific payment method, such as PayPal. Not all brokers accept every payment method, but using our comparisons you can search only the brokers that support the option you’re looking for.
- Reputation. One of the strongest indicators of a broker’s reliability is the reputation it has with the customers who have used it. Brokers are online businesses, and as such many user experiences can be found online. You can check these out in addition to our reviews to make sure you choose the right platform.
- Customer service. As you’re going to be investing your money using the platform, you want to check that the broker offers good customer service in case you have a query or something goes wrong.
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Fact-checking & references
Our editors fact-check all content to ensure compliance with our strict editorial policy. The information in this article is supported by the following reliable sources.
Invezz is a place where people can find reliable, unbiased information about finance, trading, and investing – but we do not offer financial advice and users should always carry out their own research. The assets covered on this website, including stocks, cryptocurrencies, and commodities can be highly volatile and new investors often lose money. Success in the financial markets is not guaranteed, and users should never invest more than they can afford to lose. You should consider your own personal circumstances and take the time to explore all your options before making any investment. Read our risk disclaimer >