Adobe is a publicly listed technology company (Nasdaq: ADBE). It owns a number of well-known apps such as Acrobat, Photoshop, Premiere, After effects, Lightroom, etc. It operates a subscription-based program where you can pick and choose different software.
Adobe has strong products and high margins. It introduced an artificial intelligence add-on last year to many existing apps. Its AI models were trained on its own portfolio of stock images, whose image rights they own. It has relatively low debt ($4b) and some cash ($6.8b). It has positive free cash flow and a return on equity of 32%.
Quarterly net income down 50% from same period last year due to a failed Figma acquisition that had a termination fee of $1,000m. Operating income would have been $1,907m instead of $907m (same period last year was $1,586m).
“Adobe announced that its board of directors has approved a new stock repurchase authorization, granting the company authority to repurchase up to $25 billion in common stock through March 14, 2028”
Adobe is trading near a 52-week low.
*I own and recommend shares of ADBE*
Devlin Demontigny 