Adobe (ADBE) Stock Analysis

I have been looking a lot at Adobe lately. The company was already seeing consistent growth over the past years before covid 19 hit. The company did extremely well in 2020 as people transitioned to working from home and needed the software that Adobe provides. The Q1 2021 report showed record revenue for the company, indicating that it can sustain the growth that it delivered in 2020. The customer retention rate is about 80% and the subscription model that they have implemented with Adobe Creative Cloud is getting customers to come back. Below are some of the takeaways from my analysis.

[Adobe Stock Analysis] (ADBE)

  • Up 60% since April 2020
  • Had record revenue on its Q1 2021 report
  • Diversified into both personal and commercial segments with a wide portfolio of software solutions

[Stock Rating - B (Buy)

  • The company has a large moat and consistent growth in an expanding sector
  • Price is somewhat elevated currently, but still well below analyst expectations

Conclusion: Reasonable to open a sizeable position at current prices and simply average down the entry price if the stock experiences short term volatility

Full stock analysis and conclusion can be found here: 

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Mar 31, 2021 - 1:10pm

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