Please ensure Javascript is enabled for purposes of website accessibility

Why Shares of Adobe Were Rising Today

By Chris Neiger – Jul 20, 2020 at 3:38PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Investors continue to look to tech stocks as a safe place to invest in right now.

What happened

Shares of Adobe Inc (ADBE 0.82%) were climbing today as cases of the coronavirus continued to sweep across the U.S. Investors have looked to some technology stocks as a haven of sorts as more employees are working from home than ever before. 

Adobe's stock gained as much as 5% during the day. As of 3:13 p.m. EDT, the stock was up 4.97%.

So what 

Adobe's stock wasn't moving on any company-specific news today, but investors were likely pushing up the company's share price as COVID-19 cases rose across the U.S. with no end in sight. The pandemic isn't a good thing, of course, but some investors are seeing the rising cases and putting their money into stocks that they think will be able to help companies ride out the virus. 

A red and green graph showing a rising trend, on a dark background.

 Image source: Getty Images.

Adobe's popular Creative Cloud apps could see more usage as companies look for tools to help their employees do their jobs from home. 

Adobe's share price is up nearly 30% over the past six months, compared to the S&P 500's 2.5% loss.

Now what

While Adobe's share price gains have been impressive over the past few months, investors should remember that the market isn't exactly reflecting the current economic situation in the U.S. The unemployment rate is currently at 11%, and many experts are now expecting a slower recovery than they had initially thought. That doesn't mean investors shouldn't be buying stocks right now but rather that share price moves are likely to be more volatile than usual.

Chris Neiger has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Adobe Systems. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Adobe Inc. Stock Quote
Adobe Inc.
$297.38 (0.82%) $2.41

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 10/05/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.