Topic: How To Invest

Power Growth Investor Hotline – Friday, September 18, 2020

Article Excerpt

ADOBE INC., $467.55, 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 August 28, 2020, revenue rose 13.8%, to a record $3.23 billion from $2.3 billion. The company’s earnings jumped 42.7%, to $2.57 a share from $2.05 a year earlier. In November 2018, Adobe 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…

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