In its most recent fiscal Q2 results, Adobe posted revenue growth of 10% (or 13% in constant currency) to a new quarterly record of $4.82 billion. Specifically, with the rapid expansion of the content creation industry during the COVID-19 pandemic, many anticipated a saturated market and believed Adobe’s revenue would soon plateau without significant catalysts for growth. Consistent Double-Digit Growth Despite Industry SaturationĪdobe’s remarkable capacity to consistently achieve double-digit growth is truly awe-inspiring, particularly when one considers the initial belief that the creative software industry had become saturated in a post-COVID world. Despite the seemingly elevated valuation of Adobe, I find ample justification for such a valuation. Adobe’s consistent growth trajectory, its dominant position in the industry, and the persistent tailwinds generated by AI-driven innovations all align to project a distinctly bullish sentiment. The factors supporting a less cautious stance are compelling. However, the prospect of awaiting a more opportune entry might prove to be an exercise in futility. Adobe stock ( NASDAQ:ADBE) has gained more than 60% year-to-date, which could urge investors who missed the rally to wait for a better price before potentially allocating capital to the creative software giant’s shares.
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