There are many good reasons for investors to be attracted to 's (NASDAQ: ADBE) business right now. Few other software specialists can claim anything approaching its market dominance in key niches like digital content creation and management, after all. And its software-as-a-service approach delivers a high proportion of recurring revenue and makes for a highly profitable, cash-rich business.
No business is immune to competitive and economic pressures, though. And Adobe's stock has rallied to a premium that might seem too high for some investors. With those big-picture factors in mind, let's look at whether the stock is a buy right now.
Adobe gave investors many reasons to celebrate its most recent earnings report. Sales trends beat expectations in the period that ran through early June, with revenue rising 13% after accounting for currency exchange-rate swings. The software specialist is seeing a substantial boost in productivity and demand from generative artificial intelligence (AI) and from the larger trend of the digitization of work.
Source Fool.com