Topic: How To Invest

Power Growth Investor Hotline – Friday, December 17, 2021

Article Excerpt

ADOBE INC., $556.64, is a buy. The company (symbol ADBE on Nasdaq), makes software that lets computer users create, edit and share documents in the popular PDF format. Adobe’s decision a few years ago to switch to selling its programs as ongoing subscriptions instead of one-time purchases continues to pay off for investors: In the three months ended December 3, 2021, revenue rose 20.0%, to $4.11 billion from $3.42 billion. Earnings climbed 13.9%, to $3.20 a share from $2.81 a year earlier. In November 2018, the company acquired marketing-automation firm Marketo for $4.75 billion. That firm helps brands track their customers’ actions online, from the time they get an email to the time they purchase a product. Marketo then provides those brands with that information, which they then use to create more-personalized promotions. Adobe 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 $5.8 billion. Now,…