Adobe Systems Incorporated (NASDAQ:ADBE) Rides The SaaS Wave To Grow Its Market Value

0
547

Dallas, Texas 01/03/2014 (FINANCIALSTRENDS) – Adobe Systems Incorporated (NASDAQ:ADBE) with a market cap of $29.6 billion has emerged as one of the major cloud players in the tech space in recent times. It is tracked by the S&P 500 index and has recorded sales of $4.6 billion in the past 12 months and generated net income of $290 million from its past 12 months operations.

As the news of its blow out 4Q results hit the market, the stock of Adobe Systems Incorporated (NASDAQ:ADBE) has posted net gains of 4.46 percent in the month of December and overall in the past 12 months has provided net gains of 54 percent for its investors. At January 2 close price, the stock had settled at $59.29 per share which is just 3 percentage points lower than its prior 52 week high price points.

Adobe Systems Incorporated (NASDAQ:ADBE) has been better placed than its more entrenched competition like Oracle and Microsoft in switching its licensing and business model to align with the growing customer demand for on-demand services. In mid October, the maker of software used by graphic designers had announced that it has managed to attract online customers at a faster rate to its pay as you grow services, as compared to previous quarters there by reducing its dependency on traditional licensing model which was heavily dependent on licensing specific PC and laptops.

 Adobe Systems Incorporated (NASDAQ:ADBE) had released a new licensing model called Creative Cloud Web-based software which is cloud based and in the fourth quarter had signed up 1.44 million  users and generated income of $1.04 billion over all for the quarter which ended in November 2013. In a clear indication of where the company’s focus is going to be over the next few years, its CEO Shantanu Narayen has indicated a dip in revenue over the next couple of years as the company recalibrates its operations to the run rate based software as a service business model.

This report is for information purposes only, and is neither a solicitation or recommendation to buy nor an offer to sell securities. Financials Trend is not-a-registered-investment-advisor. Financials Trend is not a broker-dealer. Information, opinions and analysis contained herein are based on sources believed to be reliable, but no representation, expressed or implied, is made as to its accuracy, completeness or correctness. The opinions contained herein reflect our current judgment and are subject to change without notice. Financials Trend accepts no liability for any losses arising from an investor's reliance on the use of this material. Financials Trend sometimes gets compensated up to one hundred and fifty thousand dollars per month for featuring particular stocks. See site disclaimer for complete compensation. Financials Trend and its affiliates or officers currently hold no shares of these stocks. Financials Trend and its affiliates or officers will purchase and sell shares of common stock of these stocks, in the open market at any time without notice. Financials Trend will not update its purchases and sales of these stocks in any future postings on Financials Trend's websites. Certain information included herein is forward-looking within the context of the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements concerning manufacturing, marketing, growth, and expansion. The words "may", "would," "will," "expect," "estimate," "anticipate," "believe," "intend," " project," and similar expressions and variations thereof are intended to identify for ward-looking statements. Such forward- looking information involves important risks and uncertainties that could affect actual results and cause them to differ materially from expectations expressed herein. *Financials Trend does not set price targets on securities. Never invest into a stock discussed on this web site or in this email alert unless you can afford to lose your entire investment.