Adobe earnings preview
Adobe will report its earnings on December 15after the closing bell. Last quarter revenue of $4.43 billion missed analysts expectations by $6.34 million. Earnings per share was $3.40, beat by $0.06. However the stock plunged on news of Adobe's acquisition of Figma, a leading web-first collaborative design platform, for approximately $20 billion in cash and stock. The combination of Adobe and Figma will usher in a new era of collaborative creativity.
For the quarter ended November 2022, analysts expect earnings per share of $3.50, while revenue expected to come in at $4.53 billion.
Immersive Reality - A Future Concept
A recent article from BofA on “Immersive Reality” and its accompanying advertising opportunity for the next five years, augmented reality/virtual reality platforms are one of the key themes in which it would lead to benefits and costs for industry players as the environment shifts. Analysts Justin Posts mentions that social media was a major innovation for Gen X and Boomers, but Gen Z & Alpha (born between 1997 and 2022) are shifting media consumption patterns towards experiences that mix elements of social, immersive, and user-generated content. These consumers are more adverse to traditional advertising, and with attention fragmentation, they are harder for brands to reach. Content that are not very traditional advertising, such as brand driven experiences, visual search, augmented reality gamification, augmented reality lenses, non fungible tokens, and influencer/creator marketing. Those benefiting from such a shift are companies with exposure to immersive content creation, and/or with large creator content communities, such as Roblox, Unity Software, Snap, and Adobe, etc.
Adobe currently trades at close to a 5-year low in terms of its price to earnings and enterprise value to EBITDA ratios. Any miss in earnings metrics or poor guidance for 2023 will leadthis stock down further as the sell off in technology and software stocks continues, and it will be a nice discount to pick up more shares ofAdobe. Why? Check out their income statement below.
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- Trevelyan·2022-12-13Will the advertising industry face a huge shock or usher in an unparalleled boon? Curious how it will use the metaverse to form new markets...1Report
- AndreaClarissa·2022-12-11Ok maybe it will be a proper time to buy ADBE in the dip,just wait for buy entry.1Report
- MorganHope·2022-12-11Yeah like ADBE will rise soon after Q4 earning realese.1Report
- ElvisMarner·2022-12-14To be honest, I feel pretty good about Adobe's revenue.LikeReport
- BarbaraWillard·2022-12-11I'd like to buy ADBE at 320 USD.haha.1Report
- EvanHolt·2022-12-14Don't invest in Adobe or you'll regret it.LikeReport
- DonnaMay·2022-12-14Adobe's current valuation is very reasonable.LikeReport
- Maria_yy·2022-12-14It looks like we can focus on Adobe.LikeReport
- HilaryWilde·2022-12-14I believe Adobe can surprise us.LikeReport
- JoanneSamson·2022-12-13A new era ahead, hope it priced the sameLikeReport
- enforcer·2022-12-15okLikeReport
- lynlion·2022-12-12okLikeReport
- 夜裡精靈·2022-12-12OkLikeReport
- Darkolaf·2022-12-12kLikeReport
- Wtt·2022-12-12kLikeReport
- 愛我幸福满满·2022-12-12[微笑]1Report
- gni·2022-12-12Thanks!1Report
- loon0406·2022-12-11good1Report
- Ystar·2022-12-11OkLikeReport
- shan111·2022-12-11niceLikeReport