NEW YORK, NY / ACCESSWIRE / May 23, 2018 / Micron shares have been rallying this week. After raising guidance on Monday, the company also announced on Tuesday that it would be buying back $10 billion in shares. Shares of Adobe Systems also saw slight gains on big news that it would be acquiring Magento Commerce for $1.68 billion.

RDI Initiates Coverage on:

Micron Technology, Inc.
https://rdinvesting.com/news/?ticker=MU

Adobe Systems Incorporated
https://rdinvesting.com/news/?ticker=ADBE

Micron Technology, Inc. shares closed up 6.40% on about 109 million shares traded on Tuesday. The stock saw big gains and significant trading volume after Wall Street learned that the company is buying back $10 billion worth of stock and is working with Intel to create new chips. Shares are already up 11% this week as the company also raised its guidance on Monday which led to many analysts upping their price targets on the stock. According to Ruben Roy, an analyst with MKM Partners, Micron buying back shares "is a big vote of confidence in the strength of the business model." Roy has a "buy" rating on the stock and raised his stock price target to $72 from $65. Roy wrote, "Micron held an upbeat and well-attended analyst day where management highlighted market trends that are expected to drive continued demand for increasing memory density growth across a wide array of end market applications." Micron shares are up almost 35% this year.

Access RDI's Micron Technology, Inc. Research Report at:
https://rdinvesting.com/news/?ticker=MU

Adobe Systems Incorporated shares closed up a modest 0.29% yesterday despite the company announcing some big news. Adobe announced that it will be acquiring e-commerce content management system software provider Magento Commerce for $1.68 billion. Magento helps companies build online stores and has clients that include CocaCola and Canon Inc. According to analysts, by buying Magento, Adobe will have exposure to the digital commerce industry and will be able to rival companies like Shopify. According to Brian Essex, an analyst with Morgan Stanley, "We see the Adobe/Magento combination as a new long-term threat for investors to consider as Shopify continues to target larger merchants." Shares of Shopify fell 4% in Monday trading after the news. Last year Magento made almost $150 million in revenues. The company will not, however, be able to recognize much of the company's revenues in the next year due to purchase accounting rules.

Access RDI's Adobe Systems Incorporated Research Report at:
https://rdinvesting.com/news/?ticker=ADBE

Our Actionable Research on Micron Technology, Inc. (NASDAQ: MU) and Adobe Systems Incorporated (NASDAQ: ADBE) can be downloaded free of charge at Research Driven Investing.

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