Adobe (NASDAQ: ADBE) is a dominant company in creative software that no other company can beat. Adobe is a leading software company that focus on graphics, video and other related content. The company is well known for its popular media editing applications, such as Photoshop, Illustrator and After Effects. In recent years, Adobe has successfully expanded into marketing software and cloud collaboration tools. Investors should buy this stock for the following reasons.
- Adobe has impressive cash flow from the digital media segment, which includes the creative software business and the document cloud business. With no competitors, the business is still growing at an impressive rate and delivers a gross margin exceeding 90%.
- Adobe is a leader in digital marketing software.
- Adobe’s Document Cloud product suites have been in high demand.
- Adobe has a highly successful subscription model for its software products.
- Adobe is one of the world’s largest software company.
In summary, Adobe is a long term buy and hold stock investment. Adobe continues to impress investors with its ability to grow and to find new markets for its software. The company has proven to generate significant cash every year.