Investors who are itching to buy Adobe (ADBE) should wait until the software maker reports quarterly results later this week, CNBC's Jim Cramer said Tuesday.
Shares of Adobe entered Tuesday's session up 11.5% since the Aug. 18 close, and now two Wall Street firms — BMO Capital Markets and Wells Fargo — hiked their price targets on Adobe stock, implying further upside ahead. Adobe is set to report fiscal 2023 third-quarter earnings after the market close Thursday.
"These are these kind of setups, I just want to warn people: There won't be any wiggle room at all. If Adobe doesn't [throw] it right down the middle, it will be called a ball, and people will sell," Cramer said, using a baseball metaphor. "I think if you don't own Adobe by now, you might just want to wait."
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Similar circumstances — excess optimism combined with hearty year-to-date stock gains — contributed to Oracle's (ORCL) roughly 12% decline Tuesday morning, Cramer said, as investors digested the business software maker's mixed quarterly results from Monday evening. Oracle was up about 55% in 2023 prior to Monday's print, and two brokerage firms upgraded its stock to buy in recent weeks. "Never great," said, Cramer whose Charitable Trust, the portfolio used by the CNBC Investing Club, owns Oracle.
Adobe's market value has increased by roughly two-thirds so far in 2023, amid optimism around the Photoshop maker's artificial intelligence opportunity. "I think it's a really good company," added Cramer, who called Adobe the No. 1 player in AI software on Aug. 17. "But it went down last time after a really great quarter. It could happen again."
Here's a full list of the stocks in Jim's Charitable Trust, the portfolio used by the CNBC Investing Club.