Studying companies to invest #03 – Adobe Systems

in LeoFinance4 years ago


Hello friends. Today, continuing our studies, still in the technology sector...


Adobe Systems is a multimedia and creative software company founded in the United States.

The company is widely known for its main software such as Photoshop, Acrobat Reader, Portable Document Format (PDF), and many others.

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In 2013, the company began to change the charging model for software purchases by the subscription model with monthly payments.


This event caused a worsening of short-term results but in the following years, it started to deliver better results than the time before the change.

Currently, the company has been showing increasing profits and cash flow generation, in addition to very low debt.

The significant increase in its debt is a consequence of the purchase of the company Magento for $ 1.7 billion just before 2020.

Undoubtedly, it is one of the most solid software companies in the world and so far it has been providing excellent profitability to its shareholders.



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I won't invest in Adobe, just on principle.

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Hi @chasmic-cosm. Can you tell me why? For the time being I still don’t invest, they are only preliminary studies.

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I'm not a fan of their subscription model, and their software has become really bloated over the years.

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The longer the base, the higher in space they say on the break.

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Sorry, can you explain better what you meant? My studies are on the financial statements released by the company and I rarely look at stock price charts. Thanks.

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ADBE has been consolidation sideways for a while. Meaning that is has not gone anywhere for a while. Usually this mean the stock is correcting through time and not price. A break below support means stay away but above and it can run to much higher prices.

Interestingly, I don't understand Technical Analysis. My goal is to be a partner in the companies in the long term and to buy small quantities little by little for Buy and Hold.

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