Topic: How To Invest

Power Growth Investor Hotline – Friday, December 15, 2023

Article Excerpt

ADOBE INC., $584.68, is a buy. The company (symbol ADBE on Nasdaq) operates through three main segments: The Digital Media segment’s software includes Adobe Photoshop and Adobe InDesign; the Digital Experience segment provides analytics, social marketing, targeting, media optimization, and cross-channel campaign management software, as well as premium video delivery; and the Publishing segment produces software that lets computer users create, edit and share documents in the popular PDF format. It offers software to develop web applications. Adobe continues to report improved results. In the three months ended December 1, 2023, revenue rose 11.6%, to a record $5.05 billion from $4.53 billion. Excluding one-time items, earnings climbed 18.6%, to $4.27 a share from $3.60 a year earlier. The company also spends a high 18% of its sales on research to stay ahead of the competition. Its balance sheet is nonetheless very strong: it holds cash of $7.8 billion. Meanwhile, with an already-strong position in its key markets, Adobe’s sales should rise even higher in…