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If You Invested $1000 in Adobe Systems a Decade Ago, This is How Much It'd Be Worth Now
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How much a stock's price changes over time is important for most investors, since price performance can both impact your investment portfolio and help you compare investment results across sectors and industries.
FOMO, or the fear of missing out, also plays a role in investing, particularly with tech giants and popular consumer-facing stocks.
What if you'd invested in Adobe Systems (ADBE - Free Report) 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 2021, the company generated a total of $15.8 billion revenues, which was up 23% from fiscal 2020.
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
Anyone can invest, but building a successful investment portfolio takes a combination of a few things: research, patience, and a little bit of risk. So, if you had invested in Adobe Systems a decade ago, you're probably feeling pretty good about your investment today.
According to our calculations, a $1000 investment made in October 2012 would be worth $9,576.01, or an 857.60% gain, as of October 31, 2022. Investors should keep in mind that this return excludes dividends but includes price appreciation.
Compare this to the S&P 500's rally of 176.29% and gold's return of -8.19% over the same time frame.
Going forward, analysts are expecting more upside for ADBE.
Adobe reported strong fiscal third-quarter results wherein both earnings and revenues grew year over year. The company’s Creative Cloud, Document Cloud and Adobe Experience Cloud products drove the top-line growth. Further, rising subscription revenues and solid momentum across the mobile apps were major positives. Growth in emerging markets, robust online video creation demand and solid adoption of Acrobat are tailwinds. Continued key customer wins of are contributing well. We remain optimistic about Adobe’s market position, compelling product lines, continued innovation, strategic acquisitions and solid adoption of cloud applications. Considering the aforesaid facts, we expect fiscal 2022 revenue to grow 11.5% year over year. However, the ongoing tensions between Russia and Ukraine remain major headwinds for Digital Media segment.
The stock has jumped 18.34% over the past four weeks. Additionally, no earnings estimate has gone lower in the past two months, compared to 9 higher, for fiscal 2022; the consensus estimate has moved up as well.
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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 important for most investors, since price performance can both impact your investment portfolio and help you compare investment results across sectors and industries.
FOMO, or the fear of missing out, also plays a role in investing, particularly with tech giants and popular consumer-facing stocks.
What if you'd invested in Adobe Systems (ADBE - Free Report) 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 2021, the company generated a total of $15.8 billion revenues, which was up 23% from fiscal 2020.
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
Anyone can invest, but building a successful investment portfolio takes a combination of a few things: research, patience, and a little bit of risk. So, if you had invested in Adobe Systems a decade ago, you're probably feeling pretty good about your investment today.
According to our calculations, a $1000 investment made in October 2012 would be worth $9,576.01, or an 857.60% gain, as of October 31, 2022. Investors should keep in mind that this return excludes dividends but includes price appreciation.
Compare this to the S&P 500's rally of 176.29% and gold's return of -8.19% over the same time frame.
Going forward, analysts are expecting more upside for ADBE.
Adobe reported strong fiscal third-quarter results wherein both earnings and revenues grew year over year. The company’s Creative Cloud, Document Cloud and Adobe Experience Cloud products drove the top-line growth. Further, rising subscription revenues and solid momentum across the mobile apps were major positives. Growth in emerging markets, robust online video creation demand and solid adoption of Acrobat are tailwinds. Continued key customer wins of are contributing well. We remain optimistic about Adobe’s market position, compelling product lines, continued innovation, strategic acquisitions and solid adoption of cloud applications. Considering the aforesaid facts, we expect fiscal 2022 revenue to grow 11.5% year over year. However, the ongoing tensions between Russia and Ukraine remain major headwinds for Digital Media segment.
The stock has jumped 18.34% over the past four weeks. Additionally, no earnings estimate has gone lower in the past two months, compared to 9 higher, for fiscal 2022; the consensus estimate has moved up as well.