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Adobe's (ADBE) Creative Cloud Express to Expand Creator Base

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Adobe (ADBE - Free Report) has been persistently expanding its portfolio of solutions on the back of new product introductions.

This is evident from the company’s recent launch of a unified web and mobile solution, Creative Cloud Express.

Creative Cloud Express offers innovative capabilities for creating and sharing rich multimedia content. It also provides seamless integration with Creative Cloud Libraries and access to several templates, 20,000 Adobe fonts, and 175 million licensed Adobe stock images.

Additionally, Creative Cloud Express leverages the Adobe Stock Marketplace for advanced search and discover functionalities. It also uses its AI-based advanced solution, Adobe Sensei, for offering “Quick Actions” features. On the back of ContentCal capabilities, it further aims to manage social media publishing workflows.

With the launch of Creative Cloud Express, Adobe strives to expand its reach to more creators and retain the existing ones.

Adobe Inc. Price and Consensus

Adobe Inc. Price and Consensus

Adobe Inc. price-consensus-chart | Adobe Inc. Quote

Digital Media Segment in Focus

We believe that the latest introduction has added strength to Adobe Creative Cloud offerings, which, in turn, is likely to drive the company’s Digital Media segment growth.

Apart from launching a new product, Adobe recently acquired a premier social media and content marketing platform, ContentCal, in a bid to expand social media functionalities.

Adobe also completed the acquisition of a leading cloud-enabled video review and collaboration platform named Frame.io and added strength to Adobe Creative Cloud offerings.

It is worth mentioning that Creative Cloud generated $2.4-billion revenues in the fiscal third quarter, which rose 21% from the year-ago period.

Thus, the segment has become an integral part of the company, which generated revenues of $2.9 billion in the quarter, 2021, up 23% on a year-over-year basis.

Expanding Portfolio of Solutions

Apart from the latest move, Adobe has introduced a number of solutions with innovative capabilities.

Recently, it introduced Adobe PDF Extract API and Adobe Document Generation API for developers so that they can seamlessly build new and innovative document solutions.

Additionally, the company added advanced capabilities in Experience Cloud to help retailers strategize for peak sales periods and provide more personalized customer experiences.

It also unveiled an advanced enterprise application named Real-time Customer Data Platform, designed for first-party data-driven customer acquisition and engagement.

We believe that these growing efforts by Adobe will contribute to top-line growth in the upcoming period.

Yet, the company’s overdependence on Creative Cloud and Acrobat product lines as well as high acquisition expenses remain major concerns.

Zacks Rank & Stocks to Consider

Currently, Adobe carries a Zacks Rank #4 (Sell).

Investors interested in the broader technology sector can consider stocks like Advanced Micro Devices (AMD - Free Report) , Mimecast Limited and Nova Measuring Instruments (NVMI - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Advanced Micro Devices has gained 47.9% on a year-to-date basis. The long-term earnings growth rate for the stock is currently projected at 46.2%.

Mimecast has gained 39.8% on a year-to-date basis. The long-term earnings growth rate for the stock is currently projected at 35%.

Nova Measuring Instruments has gained 80% on a year-to-date basis. The long-term earnings growth rate for the stock is currently projected at 32.2%.


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