Adobe Inc., (NASDAQ: ADBE) together with its subsidiaries, operates as a diversified software company worldwide. It operates through three segments: Digital Media, Digital Experience, and Publishing and Advertising. The Digital Media segment offers products, services, and solutions that enable individuals, teams, and enterprises to create, publish, and promote content; and Document Cloud, a unified cloud-based document services platform. Its flagship product is Creative Cloud, a subscription service that allows members to access its creative products. This segment serves content creators, students, workers, marketers, educators, enthusiasts, and communicators. The Digital Experience segment provides an integrated platform and set of applications and services that enable brands and businesses to create, manage, execute, measure, monetize, and optimize customer experiences from analytics to commerce. This segment serves marketers, advertisers, agencies, publishers, merchandisers, merchants, web analysts, data scientists, developers, and executives across the C-suite. The Publishing and Advertising segment offers products and services, such as e-learning solutions, technical document publishing, web conferencing, document and forms platform, web application development, and high-end printing, as well as Advertising Cloud offerings. It also provides consulting, technical support, and learning services. The company offers its products and services directly to enterprise customers through its sales force and local field offices, as well as to end users through app stores and through its website at It also distributes products and services through distributors, value-added resellers, systems integrators, software vendors and developers, retailers, and original equipment manufacturers. The company was formerly known as Adobe Systems Incorporated and changed its name to Adobe Inc. in October 2018. Adobe Inc. was founded in 1982 and is headquartered in San Jose, California.

finviz dynamic chart for ADBE

Company Overview

  • Market Cap: 226.056 billion
  • PE Ratio: 47.62
  • EPS: 10.49
  • Average Analyst Ratings: (11 Strong Buy, 14 Buy. 6 Hold) 2.0 Buy Rating.

Adobe is another company that is working to integrate AI into its products. Its Firefly AI model harnesses the power of large language models (LLMs) to generate high-quality images. This model has been a hit and was a major focus of Adobe’s Q1 FY 2024 (ending March 1).

Adobe also had a strong Q1, with revenue rising 11% year over year to $5.18 billion. Its earnings per share (EPS) would have risen from $2.72 to $3.58 (a 32% increase), but Adobe had to pay a $1 billion breakup fee for the terminated Figma acquisition. However, because Adobe guided for $5.25 billion to $5.3 billion in Q2 revenue while analysts expected $5.31 billion, the stock fell around 13% the day after earnings.

This is a prime opportunity to scoop up Adobe shares cheaply, as the stock now trades for about 29 times FY 2024 estimates. Considering Adobe usually trades for around 50 times trailing earnings, the stock could have massive upside if it hits those estimates.

Adobe is a long-term winner in its segment and is a great growth stock to own for long term.

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