Topic: How To Invest

Power Growth Investor Hotline – Friday, September 20, 2024

Article Excerpt

ADOBE INC., $522.30, is a buy. The company (symbol ADBE on Nasdaq) 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, as well as premium video delivery; and 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 shares took a big drop last week after the company reported its latest results—and despite higher sales and profits. In the three months ended August 30, 2024, revenue rose 10.6%, to a record $5.41 billion from $4.89 billion. Excluding one-time items, earnings climbed 13.7%, to $4.65 a share from $4.09 a year earlier. Both revenue and earnings beat consensus estimates. The company also spends a high 18% of its sales on research to stay ahead of the competition. Its balance sheet is nonetheless very strong:…