Analysts believe Adobe stock will be one worth watching as the company is expected to release its quarterly financials.
Adobe (NASDAQ:ADBE) has agreed to pay nearly $20 billion in cash and stock to acquire Figma, an online creative collaboration company. In premarket trade, Adobe dropped 7.5%.
Subject to usual modifications, the transaction consists of roughly equal parts cash and shares. The CEO and staff of Figma will get an extra 6 million restricted stock units, with the remaining shares vesting over the course of four years after closing. In order to finance the cash consideration, Adobe anticipates using cash on hand and, if necessary, a term loan. The transaction is anticipated to close in 2023.
Dylan Field, the co-founder and CEO of Figma will remain in that position upon the transactions completion and continue to oversee the Figma staff while answering to David Wadhwani, the head of Adobes Digital Media division. Bloomberg first broke the story about Figma. In connection with the deal, Wachtell, Lipton, Rosen & Katz are acting as Adobes legal and financial advisors, respectively.
On Thursday, Adobe is expected to announce its financial results for the third quarter. The people stated that discussions were ongoing and that a deals conditions could still be altered, hence the silence.
Outlook for Adobe Stock
After the close of business tomorrow, Adobe (NASDAQ:ADBE) will release its fiscal third-quarter profits. The corporation also decreased its forecast for the quarter and the entire year in June, citing the conflict in Ukraine and, of course, pressure from foreign exchange rates. On Monday, Mizuho Securities downgraded the stock from buy to neutral and decreased its $480 price target to $440. Despite the companys decreased revenue guidance, the analyst still expects Adobe to surpass Wall Street expectations. However, for today at least, Im doing well.
Featured Image – Megapixl (C) Rafaelhenriquepress
Visit PressReach.com To Get More Articles Like This
Author: Jowi Kwasu
Market Jar Media Inc.
[email protected]
#170 – 422 Richards Street
Vancouver, BC, Canada
V6B 2Z4
1.800.340.9767
COMTEX_414581174/2814/2022-09-16T09:26:47