2Wk·

Your views on the company Adobe

I have $ADBE (-2%) shares in my portfolio, and the company is currently trading at a discount. I’d like to know your opinion — why isn’t this company attractive to you?

Maybe you don’t like the declining revenues or the fast-growing competitors?

• Strong brand and ecosystem (Photoshop, Premiere, Illustrator, Acrobat, etc.)

• Shift to subscription model created stable cash flow

• Actively integrating AI (Firefly, etc.)

• Gross margin ~87%, operating margin >30%

• Not dependent on raw materials, logistics, or cyclical demand

3 Comments

Matthias@Aequitas

2Wk

That's one of my few buy and hold positions, though not that large.

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Renato J.@renAssuncao

Adobe is a great stock, with good fundamentals. Revenue growth is good, profit margin is really good, but the retail investment sentiment is not great, similar to GooGle.... It´s a patience game, and let the stock buy the investors trust...

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SemiGrowth@SemiGrowth

The problem with Adobe is their product price policy. It is one of the most pirated products. You have to actually listen to customers. I cannot understand why you have to pay to edit a pdf file. Every user hates this company.
I would prefer that they actually care about their customers, give them a free version, make pdf files more versatile. It is just pain and if there would be a competitor, most users would switch.
I think that you should achieve a bounding to your customer to hold them long. Same with Microsoft Windows btw

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