ADBE - Embedded Expectations Analysis - 2021 05 13
Adobe Inc. (ADBE:USA) currently trades near historical highs relative to UAFRS-based (Uniform) earnings, with a 41.1x Uniform P/E. At these levels, the market is pricing in bullish expectations for the firm, but management may have concerns about revenue growth, creative app demand, and new product launchesSpecifically, management may lack confidence in their ability to maintain Creative Cloud's market leadership, continue growing net new ARR, and sustain the Digital Experience segment's revenue growth momentum. Additionally, they may have concerns about the sustainability of demand for creative apps, the benefits of the Magento acquisition, and the pace of enterprise digital investments. Furthermore, management may be exaggerating the potential of their newly launched products, the capabilities of their real-time Customer Data Platform (CDP), and Acrobat's online capabilities. Finally, management may be overstating their online spend outlook and they may lack confidence in their ability to sustain Adobe Stock's revenue growth
Adobe is a software company. The company provides a line of products and services used for creating, managing, delivering, measuring, optimizing, engaging and transacting with content across personal computers, devices and media. The company's segments are: Digital Media, which provides products, services and solutions that enable individuals, teams and enterprises to create, publish and promote their content; Digital Experience, which provides a platform and set of applications and services through Adobe Experience Cloud; and Publishing, which contains products and services that address market opportunities including eLearning solutions, web conferencing, web application development and printing.
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