We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Here's How Much a $1000 Investment in Adobe Systems Made 10 Years Ago Would Be Worth Today
Read MoreHide Full Article
For most investors, how much a stock's price changes over time is important. Not only can it impact your investment portfolio, but it can also help you compare investment results across sectors and industries.
The fear of missing out, or FOMO, also plays a factor in investing, especially with particular tech giants, as well as popular consumer-facing stocks.
What if you'd invested in Adobe Systems (ADBE - Free Report) ten years ago? It may not have been easy to hold on to ADBE for all that time, but if you did, how much would your investment be worth today?
Adobe Systems' Business In-Depth
With that in mind, let's take a look at Adobe Systems' main business drivers.
San Jose California-based Adobe Inc. is one of the largest software companies in the world. Adobe picks up licensing fees from customers, which form the bulk of its revenue.
The company also offers technical support and education, which account for the balance. The company operates through three segments.
The Digital Media solutions segment enables small businesses and enterprises to create highly compelling content, deliver it across diverse media through smartphones, tablets, e-readers, and other devices, and then optimize it through systematic targeting and measurement.
Within Digital Media, the two major components of revenue are the Creative family of products and Document Services products. The target customers are traditional content creators, web application developers, digital media professionals and user interface designers/developers, writers, videographers and photographers.
The Digital Experience segment provides insights into the performance of digital marketing initiatives, empowers organizations to make informed decisions, and tries to ensure the success of online marketing programs. The target customers are digital marketers, advertisers, publishers, merchandisers, web analysts, chief marketing officers and chief revenue officers.
The Publishing segment supports technical and business publishing through a special printing and imaging page description language and a PDF-based workflow regulation platform. The target customers are professional graphics and content publishers, as well as OEMs offering workflow software, printers and other output devices.
In fiscal 2020, the company generated $12.87 billion in revenue, which was derived from 3 segments—Digital Media solutions (72% of 2020 revenues), Digital Marketing solutions (24%) and Print and Publishing contributed the remaining 4%.
The company has offices in several countries which include the likes of Australia, Austria, Belgium, Brazil, Canada, Chile, China, Columbia, Czech Republic, Denmark, Finland, France, Germany, Hong Kong, India, Ireland, Israel, Italy, Japan and Mexico, to name a few.
Bottom Line
Anyone can invest, but building a successful investment portfolio requires research, patience, and a little bit of risk. So, if you had invested in Adobe Systems ten years ago, you're likely feeling pretty good about your investment today.
According to our calculations, a $1000 investment made in June 2011 would be worth $15,433.81, or a 1,443.38% gain, as of June 8, 2021. Investors should keep in mind that this return excludes dividends but includes price appreciation.
Compare this to the S&P 500's rally of 228.93% and gold's return of 18.73% over the same time frame.
Going forward, analysts are expecting more upside for ADBE.
Adobe is benefiting from strong demand for its creative products. The company’s Creative Cloud, Document Cloud and Adobe Experience Cloud products are driving the top-line growth. Further, rising subscription revenues and solid momentum across the mobile apps are major positives. Additionally, growth in emerging markets and robust online video creation demand remain tailwinds. Further, improving average revenue per user are contributing well. We remain optimistic about Adobe’s market position, compelling product lines, continued innovation, solid adoption of Creative Cloud and Adobe marketing cloud. However, lower end-market demand and exposure to Europe remain overhangs. High acquisition expenses do not bode well for its margin expansion. Notably, the stock has underperformed the industry it belongs to over a year.
The stock is up 6.28% over the past four weeks, and no earnings estimate has gone lower in the past two months, compared to 1 higher, for fiscal 2021. The consensus estimate has moved up as well.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Here's How Much a $1000 Investment in Adobe Systems Made 10 Years Ago Would Be Worth Today
For most investors, how much a stock's price changes over time is important. Not only can it impact your investment portfolio, but it can also help you compare investment results across sectors and industries.
The fear of missing out, or FOMO, also plays a factor in investing, especially with particular tech giants, as well as popular consumer-facing stocks.
What if you'd invested in Adobe Systems (ADBE - Free Report) ten years ago? It may not have been easy to hold on to ADBE for all that time, but if you did, how much would your investment be worth today?
Adobe Systems' Business In-Depth
With that in mind, let's take a look at Adobe Systems' main business drivers.
San Jose California-based Adobe Inc. is one of the largest software companies in the world. Adobe picks up licensing fees from customers, which form the bulk of its revenue.
The company also offers technical support and education, which account for the balance. The company operates through three segments.
The Digital Media solutions segment enables small businesses and enterprises to create highly compelling content, deliver it across diverse media through smartphones, tablets, e-readers, and other devices, and then optimize it through systematic targeting and measurement.
Within Digital Media, the two major components of revenue are the Creative family of products and Document Services products. The target customers are traditional content creators, web application developers, digital media professionals and user interface designers/developers, writers, videographers and photographers.
The Digital Experience segment provides insights into the performance of digital marketing initiatives, empowers organizations to make informed decisions, and tries to ensure the success of online marketing programs. The target customers are digital marketers, advertisers, publishers, merchandisers, web analysts, chief marketing officers and chief revenue officers.
The Publishing segment supports technical and business publishing through a special printing and imaging page description language and a PDF-based workflow regulation platform. The target customers are professional graphics and content publishers, as well as OEMs offering workflow software, printers and other output devices.
In fiscal 2020, the company generated $12.87 billion in revenue, which was derived from 3 segments—Digital Media solutions (72% of 2020 revenues), Digital Marketing solutions (24%) and Print and Publishing contributed the remaining 4%.
The company has offices in several countries which include the likes of Australia, Austria, Belgium, Brazil, Canada, Chile, China, Columbia, Czech Republic, Denmark, Finland, France, Germany, Hong Kong, India, Ireland, Israel, Italy, Japan and Mexico, to name a few.
Bottom Line
Anyone can invest, but building a successful investment portfolio requires research, patience, and a little bit of risk. So, if you had invested in Adobe Systems ten years ago, you're likely feeling pretty good about your investment today.
According to our calculations, a $1000 investment made in June 2011 would be worth $15,433.81, or a 1,443.38% gain, as of June 8, 2021. Investors should keep in mind that this return excludes dividends but includes price appreciation.
Compare this to the S&P 500's rally of 228.93% and gold's return of 18.73% over the same time frame.
Going forward, analysts are expecting more upside for ADBE.
Adobe is benefiting from strong demand for its creative products. The company’s Creative Cloud, Document Cloud and Adobe Experience Cloud products are driving the top-line growth. Further, rising subscription revenues and solid momentum across the mobile apps are major positives. Additionally, growth in emerging markets and robust online video creation demand remain tailwinds. Further, improving average revenue per user are contributing well. We remain optimistic about Adobe’s market position, compelling product lines, continued innovation, solid adoption of Creative Cloud and Adobe marketing cloud. However, lower end-market demand and exposure to Europe remain overhangs. High acquisition expenses do not bode well for its margin expansion. Notably, the stock has underperformed the industry it belongs to over a year.
The stock is up 6.28% over the past four weeks, and no earnings estimate has gone lower in the past two months, compared to 1 higher, for fiscal 2021. The consensus estimate has moved up as well.