ADBE

Adobe Inc

TMT, Software


Presented:08/26/2024
Price:$559.44
Cap:$248.06B
Current Price:$508.03
Cap:$223.63B

Presented

Date08/26/2024
Price$559.44
Market Cap$248.06B
Ent Value$198.61B
P/E Ratio50.24x
Book Value$33.06
Div Yield0%
Shares O/S443.40M
Ave Daily Vol3,111,462
Short Int1.18%

Current

Price$508.03
Market Cap$223.63B
Adobe, Inc. engages in the provision of digital marketing and media solutions. It operates through the following segments: Digital Media, Digital Experience, and Publishing and Advertising. The Digital Media segment offers creative cloud services, which allow members to download and install the latest versions of products, such as Adobe Photoshop, Adobe Illustrator, Adobe Premiere Pro, Adobe Photoshop Lightroom and Adobe InDesign, as well as utilize other tools, such as Adobe Acrobat. The Digital Experience segment provides solutions, including analytics, social marketing, targeting, media optimization, digital experience management, and cross-channel campaign management, as well as premium video delivery and monetization. The Publishing and Advertising segment includes legacy products and services for eLearning solutions, technical document publishing, web application development, and high-end printing. The company was founded by Charles M. Geschke and John E. Warnock in December 1982 and is headquartered in San Jose, CA.

Publicly traded companies mentioned herein: Adobe Inc (ADBE)

Highlights

The presenter is long shares of Adobe Inc (ADBE), viewing it as one of the cheapest large cap software stocks. His main bull thesis is that ADBE will start monetizing Firefly, which is the company’s stack of GenAI tools, pushing numbers and valuation higher. The recently launched Acrobat AI Assistant is similarly exciting with impressive early performance, a dynamic that seems overlooked by investors. He thinks these strong AI integrations will drive revenue, earnings, and FCF above consensus estimates in FY2025 and FY2026, and sees 40% upside to $784 per share over the next year based on 28x his FY2026 FCF of $28 per share.

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Idea Discussion

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