“Americans like to think that they have the most dynamic economy the world has ever seen. The data refute such claims.”Competition is what makes markets work (when they do). But firms don’t like competition because it tends to drive down profits. For the typical businessperson, whose objective is reaping gains above the normal return on capital, that is no fun. As Adam Smith observed 250 years ago, “People of the same trade seldom meet together, even for merriment and diversion, but the conversation ends in ...

With the start of a new year, investors are looking to make changes to their portfolios and add new securities. As always, it’s tedious to find companies that seem appealing. But as we enter 2024, the focus on ESG and corporate responsibility is ever-increasing. Why should we care about this? Well, the reason investors should take more consideration is companies with great ESG metrics tend to outperform the market. That is because companies focus on profits, and these metrics tend to have strong management ...

Cloud computing has changed how companies gather data and stay organized in a digital world. Cloud computing is a foundational piece for many stocks and often features exhaustive switching costs. That means high renewal rates and growing annual recurring revenue.Cloud computing companies have the flexibility to raise their prices from time to time while retaining their customers. Some cloud computing stocks have comfortably outperformed the market, and many of the big tech companies have embraced this techn ...

ANKARA, TURKIYE - DECEMBER 28: In this photo illustration logo of 'Adobe' app is displayed on a ... [+] mobile screen in front of a computer screen in Ankara, Turkiye on December 28, 2023. (Photo by Ahmet Okur/Anadolu via Getty Images)Anadolu via Getty ImagesAdobe’s stock (NASDAQ NDAQ : ADBE DBE ) has lost 4% in 2024 as compared to the 1% drop in the S&P500 index over the same period. Further, ADBE stock is currently trading around $572, which is 10% below its fair value of $633 – Trefis’ estimate for Adobe ...

Online sales reached a new record in 2023, thanks in part to buy now, pay later options.New data from Adobe, released Thursday (Jan. 4) showed that American consumers spent $222.1 billion between Nov. 1 and Dec. 31 last year, a 4.9% increase over 2022.More than half of that spending happened in November, thanks in part to a strong “Cyber Week,” in which shoppers spent $38 billion.While consumers were eager to spend online, they were also hesitant to break their budget, with buy now, pay later (BNPL) usage r ...

Online spending rose 4.9% year over year, setting a record for e-commerce during the holiday season, as shoppers pounced on discounts and leaned on buy now, pay later to cover more of their purchases, according to Adobe Analytics.Sales totaled $222.1 billion on retailers' websites and apps from Nov. 1 to Dec. 31, according to Adobe.Adobe's data covers more than 1 trillion visits to U.S. retail websites, 100 million unique items and 18 total product categories.This year, more purchases rather than higher pri ...

Dilok Klaisataporn It feels like just yesterday when I could close my eyes, throw a dart at the dart board, and land on a deeply undervalued tech stock. Tech stocks had been crushed unusually hard heading into 2023, leading them to trade at incredibly attractive valuations in spite of their strong long term secular growth outlooks. That made tech stocks a great asymmetric bet. Times have changed. Tech stocks have recovered their losses and now appear to be trading at aggressive valuations once again. Th ...

Adobe's (ADBE -1.42%) $20 billion acquisition of Figma is off, and it's a big blow to the creative technology company.In this video, Travis Hoium goes over the breakup and covers why it's such a big deal for Adobe. Not only is it a strategic challenge, it should make investors think twice about the company's valuation.*Stock prices used were end-of-day prices of Dec. 19, 2023. The video was published on Dec. 19, 2023. ...

Financial Data and Key Metrics Changes - Adobe achieved a record revenue of $5.05 billion in Q4 2023, representing a 13% year-over-year growth [4] - GAAP earnings per share for Q4 was $3.23, and non-GAAP earnings per share was $4.27, reflecting 28% and 19% year-over-year growth, respectively [4] - For the fiscal year 2023, Adobe reported total revenue of $19.41 billion, also a 13% annual growth [5] - GAAP earnings per share for FY 2023 was $11.82, and non-GAAP earnings per share was $16.07, both showing a 17% year-over-year growth [5][25] Business Line Data and Key Metrics Changes - Digital Media revenue for Q4 was $3.72 billion, growing 14% year-over-year, with net new Digital Media ARR of $569 million [9][27] - Creative Cloud revenue reached $3 billion in Q4, representing a 14% year-over-year growth, with net new Creative Cloud ARR of $398 million [10][27] - Document Cloud revenue was $721 million in Q4, growing 17% year-over-year, with a record $171 million of net new Document Cloud ARR [15][28] - Digital Experience revenue for Q4 was $1.27 billion, growing 12% year-over-year, with subscription revenue of $1.12 billion [21][29] Market Data and Key Metrics Changes - Adobe's RPO (Remaining Performance Obligations) at the end of FY 2023 was $17.22 billion, growing 13% year-over-year [5][31] - The company reported cash flows from operations of $1.6 billion in Q4 [26] - Monthly active users for Acrobat on mobile surpassed 100 million in Q4, indicating strong demand [16] Company Strategy and Development Direction - Adobe aims to leverage generative AI as a significant growth opportunity, focusing on product innovation and customer engagement [6] - The company is strategically positioned to capitalize on the growing demand for digital experiences, with a focus on enhancing its Experience Cloud offerings [19][20] - Adobe is actively engaging with regulatory bodies regarding its acquisition of Figma, which is seen as a strategic move to enhance product design capabilities [7] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in Adobe's growth trajectory, citing strong performance across all business segments and a robust pipeline for FY 2024 [25][37] - The company anticipates total revenue for FY 2024 to be between $21.30 billion and $21.50 billion, with Digital Media segment revenue projected at $15.75 billion to $15.85 billion [32][34] - Management acknowledged macroeconomic factors impacting enterprise software spending but remains optimistic about long-term growth opportunities [68] Other Important Information - Adobe's commitment to responsible AI and sustainability was recognized in various industry accolades, enhancing its brand reputation [36] - The company repurchased approximately 11.5 million shares at a cost of $4.63 billion during FY 2023 [25] Q&A Session Summary Question: Insights on 2024 guidance amidst economic stability - Management highlighted the strong execution and innovative product offerings that contributed to the guidance, emphasizing the importance of prudent expectations [40][41] Question: Concerns over Creative Cloud's net new ARR performance - Management clarified that while Creative Cloud's net new ARR was below expectations, the overall subscription growth and customer acquisition remained strong [44][46] Question: Impact of pricing changes on Creative Cloud and Document Cloud - Management indicated that pricing changes would affect less than half of the Creative Cloud base and expected more visibility into pricing benefits in the latter half of FY 2024 [51][52] Question: Adoption and competitive positioning of Adobe Express - Management reported strong adoption of Adobe Express, with ongoing innovations and integrations that enhance its competitiveness against rivals like Canva [60][62] Question: Momentum in Digital Experience business and future pipeline - Management acknowledged macroeconomic scrutiny but expressed confidence in the strong pipeline and ongoing demand for transformative customer experience solutions [68][70]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ________________________________ FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 1, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 0-15175 ADOBE INC. (Exact name of registrant as specified in its charter) _____________________ ...