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Adobe NasdaqGS:ADBE Stock Report

Last Price

US$513.68

Market Cap

US$226.1b

7D

0.3%

1Y

-16.1%

Updated

29 Nov, 2024

Data

Company Financials +

Adobe Inc.

NasdaqGS:ADBE Stock Report

Market Cap: US$226.1b

ADBE Stock Overview

Operates as a diversified software company worldwide. More details

ADBE fundamental analysis
Snowflake Score
Valuation4/6
Future Growth4/6
Past Performance3/6
Financial Health6/6
Dividends0/6

Rewards

Trading at 27.7% below our estimate of its fair value

Earnings are forecast to grow 16.33% per year

Earnings have grown 7.5% per year over the past 5 years

Risk Analysis

Significant insider selling over the past 3 months


Community Narratives

Create a narrative

Narratives bring a range of perspectives from our community.

WA
WarrenAI
Based on Analyst Price Targets

Elevating Business Horizons, AI Innovations Fuel Company's Growth And Profit Margins

Key Takeaways Adobe's AI integration, notably with Firefly and Acrobat AI Assistant, aims to boost engagement, productivity, and ultimately, revenue and ARR growth. Strategic focus on Creative Cloud, Document Cloud, Experience Cloud, and AI technologies is set to enhance market share, revenue, and operational efficiency.
View narrative
US$613.11
FV
16.2% undervalued intrinsic discount
11.14%
Revenue growth p.a.
0users have liked this narrative
0users have commented on this narrative
32users have followed this narrative
2 days ago author updated this narrative
WA
WallStreetWontons
Community Contributor

Adobe’s Canvas of Creativity: Monetizing Imagination with AI in its suite

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.
View narrative
US$898.28
FV
42.8% undervalued intrinsic discount
16.66%
Revenue growth p.a.
7users have liked this narrative
0users have commented on this narrative
3users have followed this narrative
3 months ago author updated this narrative
BA
Bailey
Equity Analyst

Increasing Total Addressable Market Through AI Will Strengthen Revenue Growth

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.
View narrative
US$705.22
FV
27.2% undervalued intrinsic discount
16.70%
Revenue growth p.a.
35users have liked this narrative
0users have commented on this narrative
2users have followed this narrative
2 months ago author updated this narrative
GO
Goran_Damchevski
Equity Analyst

Competition, Costs and Playing Catchup Will Compress Margins

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.
View narrative
US$317.27
FV
61.9% overvalued intrinsic discount
9.00%
Revenue growth p.a.
16users have liked this narrative
0users have commented on this narrative
6users have followed this narrative
2 months ago author updated this narrative

Adobe Inc. Competitors

Intuit

NasdaqGS:INTU

US$178.1b

Salesforce

NYSE:CRM

US$315.5b

AppLovin

NasdaqGS:APP

US$110.3b

Cadence Design Systems

NasdaqGS:CDNS

US$83.6b

Price History & Performance

Summary of all time highs, changes and price drops for Adobe
Historical stock prices
Current Share PriceUS$513.68
52 Week HighUS$638.25
52 Week LowUS$433.97
Beta1.3
11 Month Change5.55%
3 Month Change-10.57%
1 Year Change-16.13%
33 Year Change-16.68%
5 Year Change67.74%
Change since IPO92,507.02%

Recent News & Updates

Adobe Inc. (NASDAQ:ADBE) Shares Could Be 28% Below Their Intrinsic Value Estimate

Nov 28
Adobe Inc. (NASDAQ:ADBE) Shares Could Be 28% Below Their Intrinsic Value Estimate

Adobe: An AI Laggard Not Worth Buying (Technical Analysis)

Nov 22

Adobe: The #1 "Digital Experience Platform" Is At A Discount

Nov 01

Recent updates

Adobe Inc. (NASDAQ:ADBE) Shares Could Be 28% Below Their Intrinsic Value Estimate

Nov 28
Adobe Inc. (NASDAQ:ADBE) Shares Could Be 28% Below Their Intrinsic Value Estimate

Adobe: An AI Laggard Not Worth Buying (Technical Analysis)

Nov 22

Adobe: The #1 "Digital Experience Platform" Is At A Discount

Nov 01

Adobe (NASDAQ:ADBE) Knows How To Allocate Capital Effectively

Oct 26
Adobe (NASDAQ:ADBE) Knows How To Allocate Capital Effectively

Adobe: Wall Street Eyes A Slowdown, But Ignores The Cash Flow Story

Oct 25

Adobe's Innovative Push Into AI Secures Long-Term Growth

Oct 17

Adobe Inc.'s (NASDAQ:ADBE) Price In Tune With Earnings

Oct 14
Adobe Inc.'s (NASDAQ:ADBE) Price In Tune With Earnings

Adobe (NASDAQ:ADBE) Is Posting Promising Earnings But The Good News Doesn’t Stop There

Oct 02
Adobe (NASDAQ:ADBE) Is Posting Promising Earnings But The Good News Doesn’t Stop There

Adobe: Buy Unwarranted Pullback, Robust SaaS Monetization

Sep 21

Adobe Inc. Beat Analyst Estimates: See What The Consensus Is Forecasting For Next Year

Sep 16
Adobe Inc. Beat Analyst Estimates: See What The Consensus Is Forecasting For Next Year

Adobe: Awaiting Clearer Signs Of Revenue Acceleration

Sep 15

Adobe: The Market Is Changing, And Growth Is Decelerating (Rating Downgrade)

Sep 09

Adobe Stock Looks Like A Fully-Priced Story

Aug 23

We Think Adobe (NASDAQ:ADBE) Can Manage Its Debt With Ease

Aug 13
We Think Adobe (NASDAQ:ADBE) Can Manage Its Debt With Ease

Adobe Outlook: A Case For Holding The Position

Jul 23

Adobe: AI Developments Galore

Jul 11

Adobe: Ride The Winning Generative AI Play

Jul 04

Adobe: Don't Expect It To Beat The Market Long-Term (Rating Downgrade)

Jun 27

Adobe: Q2 Showed The Monetization Power Of Company's AI Tools

Jun 20

Adobe Inc. (NASDAQ:ADBE) Just Released Its Second-Quarter Results And Analysts Are Updating Their Estimates

Jun 16
Adobe Inc. (NASDAQ:ADBE) Just Released Its Second-Quarter Results And Analysts Are Updating Their Estimates

Adobe Q2 Earnings: Picture-Perfect Priced In

Jun 14

Is There An Opportunity With Adobe Inc.'s (NASDAQ:ADBE) 22% Undervaluation?

Jun 02
Is There An Opportunity With Adobe Inc.'s (NASDAQ:ADBE) 22% Undervaluation?

Adobe (NASDAQ:ADBE) Is Achieving High Returns On Its Capital

May 21
Adobe (NASDAQ:ADBE) Is Achieving High Returns On Its Capital

Adobe: Generative AI Fears Create An Opportunity (Ratings Upgrade)

May 17

Why Investors Shouldn't Be Surprised By Adobe Inc.'s (NASDAQ:ADBE) P/E

May 08
Why Investors Shouldn't Be Surprised By Adobe Inc.'s (NASDAQ:ADBE) P/E

We Think Adobe (NASDAQ:ADBE) Can Manage Its Debt With Ease

Apr 26
We Think Adobe (NASDAQ:ADBE) Can Manage Its Debt With Ease

Adobe Has A Weak AI Monetization Strategy

Apr 16

Should You Investigate Adobe Inc. (NASDAQ:ADBE) At US$474?

Apr 14
Should You Investigate Adobe Inc. (NASDAQ:ADBE) At US$474?

Adobe: Strong Fundamentals Overshadowed By Growth Uncertainty, Hold Rating

Apr 05

Adobe: AI Story Is On Right Track, Time To Be Patient (Rating Upgrade)

Mar 26

Adobe (NASDAQ:ADBE) Is Posting Promising Earnings But The Good News Doesn’t Stop There

Mar 21
Adobe (NASDAQ:ADBE) Is Posting Promising Earnings But The Good News Doesn’t Stop There

Adobe: AI Is Not An Enemy, But An Ally - Buy The Weakness (Rating Upgrade)

Mar 18

Shareholder Returns

ADBEUS SoftwareUS Market
7D0.3%-0.4%0.5%
1Y-16.1%23.0%30.7%

Return vs Industry: ADBE underperformed the US Software industry which returned 23% over the past year.

Return vs Market: ADBE underperformed the US Market which returned 30.7% over the past year.

Price Volatility

Is ADBE's price volatile compared to industry and market?
ADBE volatility
ADBE Average Weekly Movement4.4%
Software Industry Average Movement7.7%
Market Average Movement6.3%
10% most volatile stocks in US Market16.3%
10% least volatile stocks in US Market3.1%

Stable Share Price: ADBE has not had significant price volatility in the past 3 months compared to the US market.

Volatility Over Time: ADBE's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
198229,945Shantanu Narayenwww.adobe.com

Adobe Inc., 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.

Adobe Inc. Fundamentals Summary

How do Adobe's earnings and revenue compare to its market cap?
ADBE fundamental statistics
Market capUS$226.12b
Earnings (TTM)US$5.36b
Revenue (TTM)US$20.95b

42.2x

P/E Ratio

10.8x

P/S Ratio

Is ADBE overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report (TTM)
ADBE income statement (TTM)
RevenueUS$20.95b
Cost of RevenueUS$2.38b
Gross ProfitUS$18.57b
Other ExpensesUS$13.21b
EarningsUS$5.36b

Last Reported Earnings

Aug 30, 2024

Next Earnings Date

Dec 11, 2024

Earnings per share (EPS)12.18
Gross Margin88.66%
Net Profit Margin25.59%
Debt/Equity Ratio38.7%

How did ADBE perform over the long term?

See historical performance and comparison