Wall Street Hates Adobe's Figma Acquisition: What If They're Wrong?
Shares of Adobe (NASDAQ: ADBE) cratered last week following the announcement of its $20 billion acquisition of design collaboration software firm Figma.
The price tag amounts to about 50 times Figma's projected 2022 sales. So at a time when many software-as-a-service (SaaS) stocks have seen their price-to-sales ratios cut in half or more, Wall Street analysts are almost uniformly negative on the deal, citing its high price. Adobe saw a slew of downgrades following the news.
But what if the acquisition isn't so overvalued? After all, Meta's acquisition of Instagram and Alphabet's acquisition of YouTube were also thought to be expensive at the time, yet both wound up being huge successes. Could Figma do the same for Adobe?
Source Fool.com
