Wednesday, August 20, 1986.
That’s the day Adobe Inc. went public at $11 per share.
Today (more than three decades later), almost everybody with a smartphone has used one of Adobe’s products (that PDF you just opened? Probably Adobe).
And unsurprisingly, the stock now trades at around $596 per share.
Early investors who held on are sitting on more than 54x their money.
And it’s unlikely we’ll see such gains from Adobe in the years ahead.
But that doesn’t mean you can’t target decent short-term gains from the stock.
(Or, as one of my friends would say, the profit app on your smartphone).
Here’s why:
As The Motley Fool puts it… “Adobe has been one of the most consistent companies on the market… It has managed to maintain respectable growth levels even as many companies look to curtail their expenses.”
No wonder the stock grew 75% over the last 12 months. And why it has surpassed Wall Street’s earnings expectations for four consecutive quarters.
I believe it will continue this impressive trend in the months ahead because despite its strong profitability and market dominance in digital content creation…
The company continues to expand its market share with innovative strategies.
For example, Adobe’s product suite is already the dominant force in digital media.
But its new AI tools revolutionize user experiences and streamline workflows.
Plus, their subscription-based model continues to fuel impressive revenue growth (up 12% in the last quarter)… And strong profitability metrics — bolstered by a loyal customer base — solidify the company’s position as an industry leader.
Of course, in a rapidly evolving tech landscape, Adobe faces competition from various fronts, including established players and emerging startups.
However, the company’s global expansion, especially in Southeast Asian regions experiencing rapid digital growth, helps maintain its competitive edge.
These are just some reasons the stock is worth paying attention to.
As a reminder, every stock has risks (including Adobe).
And nothing in the stock market is ever guaranteed.
But if my latest analysis is correct… I won’t be surprised if the current price action from Adobe delivers a decent 15% gain over the next five weeks.
For more insight, see our approach for short-term gains.
Wishing you many blessings,