5 TIPS ON ADOBE STOCK
The highest quality software stock that no one is talking about
Tired of software stocks with poor business strategies and sketchy balance sheets?
Adobe is a tried-and-true stock promising great growth, so our partners Brian Feroldi and Brian Stoffel analyzed the stock. Here are 5 great tips they shared:
1️⃣ The “switching costs” for Adobe users retain people and keep them coming back to buy more tools within the ecosystem. ARR (Annual Recurring Revenue) is a great metric to gauge this! Careers are built on these programs, and leaving is costly. 👀
2️⃣ Adobe has 3 main platforms generating revenue:
Creative Cloud (Photoshop, Illustrator) - STILL growing at 22% each year
Experience Cloud (for marketing pros) - STILL growing by 28% each year
Document Cloud (e-sign, PDFs) - STILL growing by 26% each year 💰
3️⃣ Adobe made the strategic decision to offer their PDF reader for free back in the beginning. That was a catalyst for their software gaining visibility and traction in companies and schools everywhere. Today, it’s the standard in many organizations. 📊
4️⃣ Adobe’s balance sheet showcases some major free cash flow! The current numbers are impressive, but that’s including the hefty stock buy-backs that the company has been making. If it were to stop, the cash flow would go even higher.
5️⃣ All company insiders combined hold less than 1% of the available shares… This might seems worrying, yet that adds up to a whopping $730M (730M reasons for insiders to get that stock higher!) Check out Brian and Brian’s analysis here:
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💥 Bonus💥 Both Brians keep portfolios on Stock Card, including Brian Feroldi’s Quality Checklist Portfolio! #ADBE stock made the cut. Follow it here to know about his next updates ⬇️