Adobe Inc. Stock Price

The prevailing narrative surrounding Adobe Inc. in the mid-2020s has been characterized by a profound sense of technological anxiety.Read more

Rationale- The last three years their revenue growth has been 10% every year. While their revenue is growing at that pace, their profit margin is growing alongside it, showing constant growth with increasing margins.Read more

TLDR; "HOLD" The story of Adobe today is that of a wide-moat champion that has been knocked from its pedestal. After a deep-dive analysis, our conclusion is that Adobe remains a world-class business, but the competitive landscape has fundamentally changed.Read more

TL;DR For me, Adobe is the quintessential falling knife. I’ll buy if it drops further — not because I believe in a renaissance, but because fortress-like margins and sticky workflows can keep this wounded giant on its feet.Read more

️️ Business Overview Key Metrics Total: 9/17 +2 ✅✅ Projected Operating Margin: 46.04% +0 ⚠️ Projected 5-Year Revenue CAGR: 8.69% +2 ✅✅ Last 5-Year ROIC: 28.00% +1 ✅ Estimated Cost of Capital: 10.31% (lower than ROIC) +1 ✅ Last 5-Year Shares Outstanding CAGR: -2.32% +1 ✅ Projected 5-Year EPS CAGR: 10.67% +0 ⚠️ Projected 5-Year Dividend CAGR: N/A +1 ✅ Moody's Rating: A1 +2 ✅✅ Morningstar Moat: Wide -1 ❌ Morningstar Uncertainty: High Adobe has very high margins resulting from its competitive advantages and wide moat. Also, the company is managed well returning on its investments almost triple its cost of capital.Read more

Adobe (NASDAQ: ADBE) delivered another record quarter, signaling that its transition into an AI-powered creative and document platform is translating into real financial performance. For the third quarter of fiscal 2025, revenue rose 11 percent year over year to $5.99 billion , while diluted earnings per share came in at $4.18 on a GAAP basis and $5.31 on a non-GAAP basis.Read more

Key Takeaways Adopting new technology like AI, AR/VR and browser-first cloud software will keep Adobe on top of the creative industry. AI Integration will empower commercial users and help onboard new users by making workflows simpler.Read more

Key Takeaways Slowing growth and margin pressure by new tech will force low return reinvestment Buying Figma is cheaper than competing, but regulators may block Experience Cloud is a growth story, but not Adobe's strong suit High-quality business, but high-growth perception is unsustainable and will likely subside Catalysts Company Catalysts Margins compressing from AI-driven design The adoption of AI-driven design - the $63B TAM can improve as more people utilize creative works, but the profitability of such projects may decline due to the higher availability of AI driven design. This may result in more revenue but lower profitability for Adobe.Read more

Catalysts Products and Services Impacting Sales and Earnings : Adobe has a diverse portfolio of products and services that contribute to its revenue growth. Here are some key highlights: Creative Cloud : Adobe’s Creative Cloud suite includes popular software like Photoshop, Illustrator, and Premiere Pro.Read more