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Upturn AI SWOT - About
ADBE 
Adobe Systems Incorporated (ADBE)
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Upturn Advisory Summary
04/01/2025: ADBE (1-star) is currently NOT-A-BUY. Pass it for now.
Upturn Star Rating
Not Recommended Performance
These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.
AI Based Fundamental Rating
Below Average Performance
These Stocks/ETFs, based on Upturn Advisory, often underperform the market, warranting careful consideration before investing.
Analysis of Past Performance
Type Stock | Historic Profit -45.5% | Avg. Invested days 26 | Today’s Advisory PASS |
Upturn Star Rating | Upturn Advisory Performance  2.0 | Stock Returns Performance  1.0 |
| Profits based on simulation | Last Close 04/01/2025 |
Key Highlights
Company Size Large-Cap Stock | Market Capitalization 164.39B USD | Price to earnings Ratio 25.32 | 1Y Target Price 523.22 |
Price to earnings Ratio 25.32 | 1Y Target Price 523.22 | ||
Volume (30-day avg) 4014142 | Beta 1.37 | 52 Weeks Range 374.50 - 587.75 | Updated Date 03/31/2025 |
52 Weeks Range 374.50 - 587.75 | Updated Date 03/31/2025 | ||
Dividends yield (FY) - | Basic EPS (TTM) 15.15 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Revenue by Geography
Geography revenue - Year on Year
Earnings Date
Report Date 2025-03-12 | When Before Market | Estimate 4.9723 | Actual 5.08 |
Profitability
Profit Margin 30.64% | Operating Margin (TTM) 37.85% |
Management Effectiveness
Return on Assets (TTM) 17.19% | Return on Equity (TTM) 47.28% |
Valuation
Trailing PE 25.32 | Forward PE 18.9 | Enterprise Value 163517602000 | Price to Sales(TTM) 7.46 |
Enterprise Value 163517602000 | Price to Sales(TTM) 7.46 | ||
Enterprise Value to Revenue 7.42 | Enterprise Value to EBITDA 17.75 | Shares Outstanding 426200000 | Shares Floating 425019426 |
Shares Outstanding 426200000 | Shares Floating 425019426 | ||
Percent Insiders 0.23 | Percent Institutions 87.38 |
Analyst Ratings
Rating 4.03 | Target Price 576.2 | Buy 8 | Strong Buy 18 |
Buy 8 | Strong Buy 18 | ||
Hold 10 | Sell 2 | Strong Sell 1 | |
Strong Sell 1 |
Upturn AI SWOT
Adobe Systems Incorporated
Company Overview
History and Background
Adobe Systems Incorporated was founded in December 1982 by John Warnock and Charles Geschke. It initially focused on developing PostScript, a page description language. Adobe revolutionized desktop publishing with products like Photoshop and Illustrator, becoming a leader in creative software.
Core Business Areas
- Digital Media: Provides tools and services that enable individuals, small businesses, and enterprises to create, publish, and promote content. Includes Creative Cloud subscriptions such as Photoshop, Illustrator, Premiere Pro, and Acrobat.
- Digital Experience: Offers solutions that help businesses manage, personalize, and optimize customer experiences across various channels. Includes Adobe Experience Cloud products like Adobe Analytics, Adobe Experience Manager, and Adobe Target.
- Publishing and Advertising: Software and other services related to publishing solutions.
Leadership and Structure
Shantanu Narayen is the Chairman and CEO. Adobe has a typical corporate structure with departments for engineering, marketing, sales, finance, and operations. Board of Directors provides oversite for the company.
Top Products and Market Share
Key Offerings
- Photoshop: The leading image editing software for professionals. Adobe commands an estimated 49% market share in the image editing software market. Competitors include Corel PaintShop Pro and GIMP. Photoshop revenue is estimated to be around 1.1 billion USD annually.
- Creative Cloud: A subscription service providing access to a suite of creative applications, including Photoshop, Illustrator, and Premiere Pro. Creative Cloud has over 29 million subscribers. Competitors include Autodesk and Corel.
- Acrobat DC: A comprehensive PDF solution for creating, editing, and managing PDF documents. Adobe holds over 80% market share in the PDF software market. Competitors include Nitro and Foxit.
- Adobe Experience Cloud: Platform for providing customers with better digital experiences.
Market Dynamics
Industry Overview
The software industry is highly competitive and rapidly evolving, driven by technological advancements, cloud computing, and digital transformation. There's increasing demand for creative tools, digital marketing solutions, and customer experience management platforms.
Positioning
Adobe is a dominant player in the creative software market and a significant player in the digital experience market. Its competitive advantages include its strong brand, extensive product portfolio, and large customer base.
Total Addressable Market (TAM)
The TAM for digital transformation is expected to be over 1 trillion USD. Adobe is well-positioned to capture a significant portion of this TAM with its comprehensive suite of software and services.
Upturn SWOT Analysis
Strengths
- Strong Brand Recognition
- Extensive Product Portfolio
- Large and Loyal Customer Base
- Recurring Revenue Model (Subscription-Based)
- Innovation in AI and Machine Learning
Weaknesses
- High Subscription Costs (Barrier to Entry for Some)
- Dependence on Subscription Model
- Complexity of Some Products
- Security Vulnerabilities
- Customer service reviews
Opportunities
- Expansion into Emerging Markets
- Further Integration of AI into Products
- Partnerships and Acquisitions
- Growth in Digital Transformation Spending
- Opportunities in the metaverse
Threats
- Intense Competition
- Software Piracy
- Economic Downturn
- Changing Technology Landscape
- Open source offerings
Competitors and Market Share
Key Competitors
- MSFT
- CRM
- ORCL
- AVLR
- BMCS
Competitive Landscape
Adobe's advantages include its brand, product portfolio, and customer base. Its disadvantages include high subscription costs and competition from open-source alternatives.
Major Acquisitions
Figma
- Year: 2022
- Acquisition Price (USD millions): 20000
- Strategic Rationale: To enhance Adobe's collaborative design and prototyping capabilities (deal fell through).
Growth Trajectory and Initiatives
Historical Growth: Adobe has experienced significant growth over the past decade, driven by the adoption of its subscription-based model and expansion into new markets.
Future Projections: Analysts project continued revenue growth and profitability for Adobe, driven by strong demand for its creative and digital experience solutions. EPS is expected to grow at a double-digit rate.
Recent Initiatives: Adobe has been investing heavily in AI and machine learning to enhance its products and services. It has also been making strategic acquisitions to expand its capabilities.
Summary
Adobe is a strong company with a dominant position in the creative software market and a growing presence in digital experience solutions. Its subscription-based model provides recurring revenue and strong profitability. Adobe needs to watch out for increasing competition and the potential impact of economic downturns on consumer spending.
Similar Companies
- MSFT
- CRM
- ORCL
- AVLR
- BMCS
Sources and Disclaimers
Data Sources:
- Adobe Investor Relations
- Financial News Articles
- Market Research Reports
- Analyst Estimates
Disclaimers:
This analysis is for informational purposes only and should not be considered financial advice. Market conditions and company performance can change rapidly.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Adobe Systems Incorporated
Exchange NASDAQ | Headquaters San Jose, CA, United States | ||
IPO Launch date 1986-08-20 | Chairman & CEO Mr. Shantanu Narayen | ||
Sector Technology | Industry Software - Application | Full time employees 30709 | Website https://www.adobe.com |
Full time employees 30709 | Website https://www.adobe.com | ||
Adobe Inc., together with its subsidiaries, operates as a technology company worldwide. It operates through three segments: Digital Media, Digital Experience, and Publishing and Advertising. The Digital Media segment offers products and services that enable individuals, teams, and enterprises to create, publish, and promote content; and Document Cloud, a cloud-based document services platform. Its flagship product is Creative Cloud, a subscription service that allows subscribers to use its creative products and applications (apps) integrated with cloud-delivered services across various surfaces and platforms. This segment serves photographers, video editors, graphic and experience designers, and game developers; content creators, students, marketers, and knowledge workers; and consumers. The Digital Experience segment provides an integrated platform and set of products, services, and solutions that enable brands and businesses to create, manage, execute, measure, monetize, and optimize customer experiences from analytics to commerce. This segment serves marketers, advertisers, agencies, publishers, merchandisers, merchants, web analysts, data scientists, developers, and executives across the C-suite. The Publishing and Advertising segment offers products and services, such as e-learning solutions, technical document publishing, web conferencing, document and forms platform, web application development, and high-end printing, as well as Adobe Advertising offerings. It provides consulting, training, customer management, technical support, and learning services. The company offers its solutions directly to enterprise customers through its sales force and local field offices, and directly to businesses and consumers, as well as licenses its products to end-user customers through app stores and website at adobe.com. It markets and distributes its products through sales channels, including distributors, retailers, software developers, mobile app stores, systems integrators, independent software vendors, value-added res
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