![]() Notably, Adobe stock has consistently traded at a discernible premium against MSFT stock over the past five years. For example, Adobe stock last traded at an NTM normalized P/E of 31.5x against Microsoft stock's 30.1x. Readers can glean that ADBE stock's growth premium against MSFT stock has almost been completely digested. ADBE Stock Key MetricsĪ close look into ADBE stock key metrics will not be complete without comping it with the King of SaaS, MSFT stock. Therefore, we believe the current consolidation provides an attractive opportunity for investors to consider adding exposure. Moreover, despite the initial disappointment from its recent FQ1 earnings card, its stock has remained resilient. Nonetheless, given its competitive moat and market leadership, we believe Adobe is a core stock for most growth investors. Given ADBE stock's embedded growth premium, it has also not been spared. Notably, SaaS stocks have fallen significantly from their peaks in November. ![]() However, the fall from grace for the creative software leader is not unexpected. Therefore, the market has digested the growth premium that it once "commanded" against Microsoft ( MSFT ) stock. Since reaching its highs in November, ADBE stock has declined almost 40%. ( NASDAQ: ADBE) stock has suffered one of its most "egregious" fallouts that surpassed even its compression during the COVID-19 bear market. Robert Giroux/Getty Images News Investment ThesisĪdobe Inc.
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