Why Adobe Stock Rallied 4% Today
Shares of creativity and document-management software giant Adobe (NASDAQ: ADBE) jumped 4.3% today as of market close, compared to a less than 1% gain for the Nasdaq Composite on the day. This could be a temporary relief rally, though; the market remains in a sour mood as the Federal Reserve raises interest rates to try and tame inflation. Adobe stock is down some 44% from all-time highs as of this writing.
Adobe has been under pressure along with other growth stocks as the software titan's growth rate slows. What was once an extremely high premium investment is now approaching a value investment. Shares currently trade for less than 28 times free cash flow as of this writing.
Source Fool.com