Adobe’s R&D helps it beat its rivals

Article Excerpt

This technology stock is up sharply in 2023—and it keeps moving toward the all-time high of $700 it hit in late 2021. But while the company now looks more expensive in relation to projected earnings and sales, we feel its strong position in key markets, and its high R&D spending, will continue to give it a competitive advantage and push its shares even higher. Adobe is a Power Buy. ADOBE INC., $535.78, is a buy. The company (Nasdaq symbol ADBE; TSINetwork Rating: Average) (www.adobe.com; Shares outstanding: 455.8 million; Market cap: $246.9 billion; No dividends paid) operates through three main segments: The Digital Media segment’s software includes Adobe Photoshop and Adobe InDesign. The Digital Experience segment provides analytics, social marketing, targeting, media optimization, and cross-channel campaign management software. It also offers premium video delivery. The Publishing segment produces software that lets computer users create, edit and share documents in the popular PDF format. It offers software to develop web applications. Adobe decided a few years ago to switch to selling its programs as ongoing subscriptions…