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Adobe (ADBE) Boosts Adobe Analytics With Latest Advancements

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Adobe (ADBE - Free Report) is consistently working toward strengthening its portfolio offerings by adding innovative solutions.

This is evident from the fact that ADBE recently introduced new services in Adobe Analytics, a solution that offers insights to global brands to help them understand the effectiveness of cross-channel experiences and marketing campaigns.

Adobe’s latest services have the ability to effectively transition data from other analytics products while maintaining compliance with the Global Data Protection Regulation and the California Consumer Privacy Act. This shows the credibility of Adobe Analytics.

By leveraging Adobe’s new feature, a cross-channel analysis application named Customer Journey Analytics, brands can get deeper insights into new customer behaviours and ensure omni-channel product analysis.

With recent innovative offerings, Adobe is providing brands with a single workplace to unify data and insights across all media channels, including the streaming media and metaverse.

The enhancement in Adobe Analytics is expected to help Adobe gain momentum among digital media and metaverse customers. This, in turn, is likely to improve its top line in the days ahead.

Adobe Inc. Price and Consensus

Adobe Inc. Price and Consensus

Adobe Inc. price-consensus-chart | Adobe Inc. Quote

Efforts to Boost Prospects

The recent move helped Adobe expand its presence in the emerging metaverse market wherein growth is attributed to the increasing popularity of technologies like mixed reality, augmented reality and virtual reality. Growing focus on integrating digital and physical worlds using the Internet remains a catalyst.

Per a Precedence Research report, the global metaverse market is expected to reach $1.6 trillion by 2030, witnessing a CAGR of 50.7% between 2022 and 2030.

Further, Adobe broadened its footprint in the media space on the back of its latest advancement in Adobe Analytics.

ADBE penetrated the video streaming market, which is likely to hit $330.5 billion by 2030, seeing a CAGR of 21.3% from 2022 to 2030, according to a Research and Markets report.

Strengthening Experience Cloud Offerings

The recent move of unveiling advanced capabilities to Adobe Analytics bodes well with ADBE’s growing efforts to bolster its portfolio of Adobe Experience Cloud offerings.

In addition, Adobe added innovative features to its customer data platform (CDP) named Adobe Real-Time CDP to help brands offer personalized experiences to their customers in real time.

Strength in Experience Cloud solutions constantly helps Adobe attract new customers as well as hold on to the old ones.

Global brands like Albertsons Companies, Amazon Web Services, Bridgestone, General Motors, Marriott Hotels, PGA TOUR and Sephora already adopted Adobe Analytics to deliver enhanced customer experiences.

We believe that the advanced functionalities of Experience Cloud solutions will continue to strengthen ADBE’s Digital Experience Segment, thereby driving its segmental revenues in the near and the long term.

However, Adobe is suffering softness in the product, and services & support categories. Further, the ongoing tension between Russia and Ukraine remains a concern. ADBE halted sales of products and services in Russia and Belarus.

Shares of Adobe have been down 33.5% in the year-to-date period against the Zacks Computer and Technology sector’s decline of 31.9%.

Zacks Rank & Stocks to Consider

Currently, Adobe carries a Zacks Rank #4 (Sell).

Investors interested in the broader Zacks Computer & Technology sector can consider some better-ranked stocks like Avnet (AVT - Free Report) , Aspen Technology (AZPN - Free Report) and Amdocs (DOX - Free Report) . While Avnet and Aspen technology sport a Zacks Rank #1 (Strong Buy), Amdocs carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Avnet has gained 8.9% in the year-to-date period. The long-term earnings growth rate for AVT is currently projected at 37.2%.

Aspen technology has returned 21.7% in the year-to-date period. The long-term earnings growth rate for AZPN is currently projected at 18.4%.

Amdocs has gained 5.6% in the year-to-date period. The long-term earnings growth rate for DOX is currently projected at 10%.


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