Adobe Inc. (ADBE)

Re: Adobe Inc. (ADBE)

Postby winston » Sat Aug 10, 2019 8:41 pm

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Oversold Tech Leader: Adobe Inc. (NASDAQ: ADBE)

Even in the best of bull markets, a gain of 36.6% in just over seven months is nothing to sneeze at. That means Adobe beat the broad market by 72.6% in the period.

Then again, Adobe said on June 18 that it had achieved record quarterly revenue of $2.74 billion for its fiscal second quarter that ended May 31. Those sales were up 25% from the year-ago quarter.

With earnings of $1.83 a share, it beat forecasts. It also offered an upbeat report for the rest of the year. Following that bullish report, no fewer than 11 analysts upgraded the stock.

I have to say that I’m not surprised at how well this software leader is really doing. I’ve recommended this stock several times since the summer of 2013.

I’ve done so because the company has done a great job of moving from standard software sales to recurring revenue through a cloud-delivery format.

It now offers a suite of products through its Creative Cloud platform that is nothing short of a cash machine. It has profit margins of 39% and a 38% return on equity.

The firm also has a crackerjack CEO. Barrons named Shantanu Narayen one of the world’s best CEOs in 2016 and 2017. I’m projecting 35% gains over the next three years.

Source: Daily Trade Alert
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Re: Adobe Inc. (ADBE)

Postby winston » Sat Aug 10, 2019 8:58 pm

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August 7, 2019

Stocks to Buy on the Trade War Dip: Adobe (ADBE)

% off 2019 Highs: 9%

Trade Exposure: Visual cloud giant Adobe (NASDAQ:ADBE) doesn’t have much trade war exposure. There is the risk that escalating trade tensions continue to drag on global economic growth, which may weigh on enterprise IT spend and could eat into Adobe’s growth trajectory. But, that is about as limited trade war exposure as you will find in the market.

Secular Growth Drivers: Adobe is supported by multiple secular growth drivers which should withstand trade war tensions. The first of these secular drivers is the enterprise pivot from on-premise to cloud solutions, which remains only about 20% complete. Due to the cost-saving advantages of cloud over on-premise, this should withstand the rising cost aspect of tariffs.

The second secular driver is the global consumer pivot towards visual consumption. The world is becoming increasingly visual every day, and as it does, more enterprises are adopting Adobe’s visual cloud solutions to create visually compelling content that resonates with consumers. This pivot will not be disrupted significantly by trade war tensions.

Near Term Catalysts: Adobe just reported yet another double-beat earnings report which comprised robust revenue and profit growth. Thus, the growth trajectory here remains favorable.

As it does, strong earnings reports will converge on a depressed stock, and spark a nice recovery rally in ADBE stock. Adobe is a stock to buy.

Source: Investor Place
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Re: Adobe Inc. (ADBE)

Postby winston » Tue Sep 17, 2019 1:00 pm

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Momentum Stocks to Buy on the Dip: Adobe (ADBE)

YTD Gain Before Selloff: Over 35%
% Off High: 11%

Adobe stock, which at one point was up more than 35% year-to-date, presently trades about 11% off recent highs. That matches the biggest drop ADBE stock has posted in 2019, and the second-biggest drop over the past three years.

In other words, with ADBE stock, you have a winning company in the midst of its second-biggest selloff in three years. That’s a compelling set-up to buy the dip.

Adobe is a very good company. This company dominates the visual cloud segment, with very little competition. That’s a great segment to dominate today.

All content is becoming visual — think streaming TV services, or visual-first social media apps. We live in a world where consumers love to consume visual content, meaning we live in a world where enterprises, advertisers and creative professionals have to create visual content.

When those entities create visual content, they do so with Adobe — and they’ve been creating more and more visual content than ever before, meaning adoption of Adobe’s services is growing rapidly.

Just look at Adobe’s numbers for proof of this. Revenue growth has been in the double-digit range for a long time, and will remain there for a lot longer, because secular visual consumption trends are far from being over.

At the same time, Adobe can get away with price hikes and huge gross margins, because there’s hardly any competition in the space. Thus, this is a big margin, big growth company that will ultimately stay on a big profit growth trajectory for a lot longer.

What will that result in? A winning trajectory for ADBE stock in the long run. Thus, near-term weakness in ADBE stock is nothing more than a long-term buying opportunity.

Source: Investor Place
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Re: Adobe Inc. (ADBE)

Postby winston » Tue Sep 17, 2019 1:15 pm

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Adobe Inc.: Focus On The Long Term

Summary

Adobe will report fiscal 3Q19 results on September 16, looking to break the stock price inertia of the past three months.

While the puts and takes of margin are a bit harder to forecast, revenues should increase about 23% on the back of an improved product suite, cross-selling, and M&A.

ADBE trades at multiples that are far from depressed, but I believe the stock deserves to be valued a bit more richly.

Driving revenue momentum will likely be a combination of factors across Adobe's business segments - i.e. creative, document, and experience.

The company's growth engine has historically been supported by
(1) the introduction of new digital tools, taking advantage of strong momentum in mobile and social media,
(2) cross-selling of the company's product suite across the different client verticals and
(3) inorganic growth.

Regarding the latter, revenues should suffer a bit from more normalized comps, as the Magento acquisition turned one year old in May 2019.


Source: Seeking Alpha

https://seekingalpha.com/article/429192 ... ngcom_feed
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Re: Adobe Inc. (ADBE)

Postby winston » Tue Sep 17, 2019 1:37 pm

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The 2 Big Reasons You Should Like Adobe Stock for the Long Haul

by Luke Lango

Consensus Street estimates call for 24% revenue growth this year, 18% revenue growth next year and 15% revenue growth in 2021.

Into 2025, revenue growth should realistically remain north of 10%, putting revenues on a visible pathway toward $25 billion by 2025, from $9 billion in 2018.

Gross margins are around 88%. They should inch towards 90% thanks to gradual price hikes.

Net net, Adobe could very reasonably turn into a 50% operating margin company by 2025 with revenues of about $25 billion.


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https://finance.yahoo.com/news/2-big-re ... 52468.html
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Re: Adobe Inc. (ADBE)

Postby winston » Wed Sep 18, 2019 6:40 am

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Adobe fourth-quarter revenue forecast disappoints; shares drop

(Reuters) - Adobe Inc (O:ADBE) on Tuesday forecast fourth-quarter revenue below Wall Street expectations as the software maker faces intense competition in a fast-growing cloud market, sending shares down 4.3% in after-market trading.

The company said it expects revenue of about $2.97 billion in the current quarter, below estimates of $3.03 billion.

Major technology companies are vying for a share of the cloud market, which according to research firm Canalys Cloud Channels Analysis was worth $28 billion in the second quarter.

Adobe is the world's third largest cloud software provider, with 9.3% market share. Microsoft Corp (O:MSFT) accounts for 17.8% of the overall market and Salesforce (N:CRM) 12.5%.

Revenue from its digital media unit, home to its flagship Creative Cloud products that includes image-editing software Photoshop, rose 22% to $1.96 billion in the third quarter, beating estimates of $1.93 billion.

Net income rose to $792.8 million, or $1.61 per share, in the quarter from $666.3 million, or $1.34 per share, a year earlier.

Excluding items, Adobe earned $2.05 per share and beat analysts' average estimate of $1.97 per share.

Overall revenue rose 24% to $2.83 billion, beating expectations of $2.82 billion, according to IBES data from Refinitiv.

Source: Reuter

https://www.investing.com/news/stock-ma ... th-1980182
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Re: Adobe Inc. (ADBE)

Postby winston » Thu Sep 19, 2019 11:15 am

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Adobe: Take Advantage of Bearishness to Buy a High-Quality Stock Cheaper

Valued at a reasonable P/E of about 35, Adobe looks like a compelling growth stock to own at current levels -- especially if post-earnings bearishness takes hold during the Wednesday trading session.

by Daniel Martins

[quote]
In every major segment, except for the minuscule publishing business that accounted for only 2% of total revenues, Adobe delivered growth rates of at least 21% and at least achieved, if not exceeded, all its top-line targets.

With the stock trading at a projected current-year P/E of just over 35 while the company is expected to grow EPS at a respectable 25% pace next year, Adobe looks like a compelling growth stock to own at current levels -- especially if post-earnings bearishness takes hold during the Wednesday session.
/quote]

Source: The Street
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Re: Adobe Inc. (ADBE)

Postby winston » Thu Sep 19, 2019 11:26 am

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I Have a Solution to Adobe's Growth Problem: DocuSign

The cloud stock's results weren't great, but were nothing close to the FedEx disaster.

By TIMOTHY COLLINS

First, the digital media (aka Photoshop) growth of 22% year over year was the slowest growth the company's segment has experienced in over two-and-a-half years.

Furthermore, ARR (Annualized Recurring Revenue) in the digital media segment is growing at 5% quarter over quarter, so it is not trending in a way that we should expect the 22% year-over-year number to increase moving forward.

The second issue is growth from recent acquisition Marketo did not meet expectations. Adobe spent $4.75 billion for the B2B market apps addition to its creative tool.

The weekly chart on Adobe doesn't become troublesome until the stock breaks below $260. Then, we have the possibility of a bearish head-and-shoulders pattern that targets the December 2018 lows.


Source: The Street

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Re: Adobe Inc. (ADBE)

Postby winston » Thu Oct 03, 2019 9:49 pm

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Adobe (NASDAQ:ADBE) is another one of those names that’s quietly dished out big-time gains while nobody was looking — or expecting those gains.

All told, ADBE stock is up 170% since the end of 2016, and while down from July’s high, the pullback stopped and has started to reverse right where it needed to. That’s the 200-day moving average line, marked in white.

The prompt for the strength that took shape seemingly at a time when free alternatives to its wares are available is simple enough. Adobe has waded into cloud-based software waters, where subscription-based access means revenue is recurring.

And, the company isn’t just PDFs and image management anymore. Its Creative Cloud and Experience Cloud platforms are robust business-building tools its clients can use to grow their top and bottom lines.

The formula is working. Revenue is on pace to improve a little more than 23% this year, and though slower, next year’s projected top-line growth of nearly 18% is s till impressive.

Source: Investor Place
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Re: Adobe Inc. (ADBE)

Postby winston » Tue Nov 05, 2019 5:21 pm

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Adobe stocks rallies after 2020 outlook

by Wallace Witkowski

Adobe Inc. ADBE, -0.12% shares rallied in the extended session Monday after the software company's forecast topped Wall Street estimates.

Adobe shares rose 4.9% after hours, following a 0.1% decline to close the regular session at $277.50.

The company forecast adjusted fiscal 2020 earnings of about $9.75 a share on revenue of about $13.15 billion.

Analysts surveyed by FactSet had forecast $9.70 a share on revenue of $13.14 billion.

Adobe said it still expects adjusted fourth-quarter earnings of about $2.25 a share on revenue of about $2.97 billion.

Analysts expect $2.26 a share on revenue of $2.97 billion.

Source: Market Watch

https://www.marketwatch.com/story/adobe ... arketPulse)
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