Adobe (adbe) opinions Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Adobe (adbe) opinions

ADBE 326.87

+1.3%

Dec 3 3:59 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Pete Mason who wrote (2032)	12/15/1997 3:13:00 PM
From: Mike Connolly	Read Replies (2) of 3111

Just to play the other side of the argument: Margins on the 76% of revenue that are applications are probably about as high as on postscript at this point -- both sides of the house have to invest in ongoing product development, but each additional product sold has negligible cost. Windows applications have been growing at about 70-80% annualized rate for each of the last 4 quarters. Soundview just cut '98 forecast -- from 2.59 to 2.50 implying PE of 14.4 at current 36 price. Company is buying back upt to 15 million shares over next two years. If all are bought in '98, then earnings look like 3.15 and forward PE is 11.4. Seems excessively cheap for company which totally dominates its market, and in a market which is growing rapidly (not in professional graphics, but in enterprise & small business [read 'windows'] with perhaps consumer areas kicking in in the future). Perhaps Asian flu will cause the world to end, but if not, Adobe seems likely to continue its "boring" path of strong, steady revenue/earnings growth.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next