Buying into the "Creative Cloud"?
Adobe $ADBE is reporting earnings tomorrow! In preparation, let's compare this software giant with some other large-cap software stocks.
Aside from the mega-cap companies like $MSFT, $GOOGL, and $META, there seems to be a glass ceiling for software companies around $200B in market cap.
Will $ADBE break through this barrier once again?
After drawdowns of more than 30%, each of these stocks besides $NOW trades below 10x next year's sales.
Although $ADBE has the second-highest valuation, it currently has the second-slowest growth rate and has seen the biggest slowdown from previous highs.
One thing $ADBE does have going for it is its high margins. Adobe has the highest net income margins out of this group by more than 10%!
What do you think? Are you a fan of Adobe heading into its earnings report tomorrow?
especially in current times i would always prefer a company with a high net income margin to a company with a low sales multiple. But as always, a single mutiple or figure is not meaningful when valuing a company ;)