Where Will Adobe Stock Be in 1 Year?
Adobe's (NASDAQ: ADBE) stock rose slightly on Oct. 19 after the company revealed its guidance for fiscal 2023, which starts in early December. Let's review those new estimates and see if they'll revive its beaten-down shares, which are down more than 50% over the next 12 months from an all-time high of $688.37 last November.
Before we review Adobe's outlook, we should look back at the reasons that drove the bulls away. Back in fiscal 2020, Adobe's revenue and adjusted earnings per share (EPS) rose 15% and 28%, respectively. It also confidently repurchased $3 billion in shares throughout the year, and many investors considered it a safe tech stock to own during the pandemic. Adobe was resistant to the pandemic because its core services all locked in users with annual subscriptions. Many of its flagship services -- such as Photoshop, Illustrator, and Premiere Pro -- were also industry standard tools for media and design professionals.
Image source: Getty Images.
Source Fool.com
