ADBE - Embedded Expectations Analysis - 2021 08 06
Adobe Inc. (ADBE:USA) currently trades at a historical high relative to UAFRS-based (Uniform) earnings, with a 48.8x Uniform P/E. At these levels, the market is pricing in bullish expectations for the firm, but management may have concerns about product demand, digital transformation, and revenue growth.Specifically, management may lack confidence in their ability to continue powering the
paper-to-digital transformation, turn seamless product integration into a competitive edge, and continue delivering customer value. In addition, they may have concerns about the sustainability of demand for 3D and Immersive (3D&I) in key verticals and the persistence of demand for Sign products. Furthermore, they may lack confidence in their ability to maintain revenue growth and further close customer deals for their customer experience management (CXM) solutions.
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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