Yahoo Finance If You Invested $1000 in Adobe Systems a Decade Ago, This is How Much It'd Be Worth Now
How much a stock's price changes over time is a significant driver for most investors. Not only can price performance impact your portfolio, but it can help you compare investment results across sectors and industries as well.
Another factor that can influence investors is FOMO, or the fear of missing out, especially with tech giants and popular consumer-facing stocks.
What if you'd invested in Adobe Systems (ADBE) 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 2022, the company generated a total of $17.6 billion revenues, which was up 11.5% from fiscal 2021.
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
Putting together a successful investment portfolio takes a combination of research, patience, and a little bit of risk. For Adobe Systems, if you bought shares a decade ago, you're likely feeling really good about your investment today.
A $1000 investment made in September 2013 would be worth $11,590.45, or a 1,059.05% gain, as of September 14, 2023, according to our calculations. Investors should note that this return excludes dividends but includes price increases.
The S&P 500 rose 164.66% and the price of gold increased 38.54% over the same time frame in comparison.
Looking ahead, 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. 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. Additionally, solid demand for Adobe’s commerce offerings and growing adoption of Acrobat. We remain optimistic about Adobe’s market position, compelling product lines and continued innovation. Considering the aforesaid facts, we expect fiscal 2023 revenue to grow 9.6% year over year. However, the ongoing tensions between Russia and Ukraine remain major headwinds for Digital Media segment. Also, high acquisition expenses do not bode well for its margin expansion.
Shares have gained 7.59% over the past four weeks and there have been 1 higher earnings estimate revisions for fiscal 2023 compared to none lower. The consensus estimate has moved up as well.
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Adobe Inc. (ADBE) : Free Stock Analysis Report
