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Here's How Much a $1000 Investment in Adobe Systems Made 10 Years Ago Would Be Worth Today
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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.
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 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
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.
A $1000 investment made in July 2013 would be worth $10,822.34, or a 982.23% gain, as of July 24, 2023, according to our calculations. Investors should note that this return excludes dividends but includes price increases.
In comparison, the S&P 500 gained 168.09% and the price of gold went up 42.91% over the same time frame.
Going forward, analysts are expecting more upside for ADBE.
Adobe’s fiscal second-quarter results were impressive. Its Creative Cloud, Document Cloud and Adobe Experience Cloud products drove the top-line growth. 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. 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 2023 revenue to grow 9.6% year over year. Shares have outperformed the industry year to date. However, the ongoing Russia-Ukraine war is a headwind for Digital Media segment. High acquisition expenses do not bode well for its margin expansion.
Shares have gained 7.33% over the past four weeks and there have been 12 higher earnings estimate revisions for fiscal 2023 compared to none lower. The consensus estimate has moved up as well.
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Here's How Much a $1000 Investment in Adobe Systems Made 10 Years Ago Would Be Worth Today
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.
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 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
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.
A $1000 investment made in July 2013 would be worth $10,822.34, or a 982.23% gain, as of July 24, 2023, according to our calculations. Investors should note that this return excludes dividends but includes price increases.
In comparison, the S&P 500 gained 168.09% and the price of gold went up 42.91% over the same time frame.
Going forward, analysts are expecting more upside for ADBE.
Adobe’s fiscal second-quarter results were impressive. Its Creative Cloud, Document Cloud and Adobe Experience Cloud products drove the top-line growth. 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. 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 2023 revenue to grow 9.6% year over year. Shares have outperformed the industry year to date. However, the ongoing Russia-Ukraine war is a headwind for Digital Media segment. High acquisition expenses do not bode well for its margin expansion.
Shares have gained 7.33% over the past four weeks and there have been 12 higher earnings estimate revisions for fiscal 2023 compared to none lower. The consensus estimate has moved up as well.