Adobe Systems Incorporated (ADBE): A Promising Investment Opportunity

Adobe Systems Incorporated (NASDAQ:ADBE) recently posted excellent third quarter results. Analysts think that the stock has a lot of room to grow, as the company has successfully transitioned its revenue model to subscriptions. Adobe ’s subscription revenue now accounts for about 78% of the company’s total revenue. Subscription revenue is always recurring, and results in less costs and increased margins. While Adobe is nowhere near the Cloud giants like Amazon.com and Microsoft , the company has surpassed its peers like Salesforce, IBM and SAP AG .

Adobe ’s strengths include Cloud, graphic design tools and productivity apps. The company’s Spark graphic design apps have been downloaded more than 20 million times. Keep in mind that this is a paid suite. Adobe is also making waves in the AI sector with its Adobe Sensei platform. Adobe Sensei helps business optimize their efforts based on data and insights.

Based on the analysts' estimates both the revenue and the net result would be the highest in years. For this year Adobe 's revenue will be around 7,25 billion USD. This is according to the average of the analysts' estimates. The expected revenue would be the highest in her history. This is rather significant more than 2016's revenue of 5,85 billion USD.

Historical revenues and results Adobe plus estimates 2017

fundamental research

The analysts anticipate for 2017 a record net profit a 2,09 billion USD. For this year most of the analysts expect a profit per share of 4,22 USD. With this the price/earnings-ratio is 35,19.

For this year analysts don't expect the company to pay a dividend.The average dividend yield of the software & services companies equals a moderate 0,23 percent.

Latest estimates around 153 USD

ABN AMRO, Barclays and Robert W. Baird recently provided recommendations for the stock.

Adobe 's market value equals around 73,92 billion .

At 15.55 the stock trades 0,86 percent lower at 148,5 USD.

Historical stock prices Adobe from 2007 till 2017

fundamental research adobe

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