3 Green Flags for Adobe's Future
Wall Street has pushed Adobe's (NASDAQ: ADBE) stock lower in 2022, lumping the software specialist in with other tech stocks that are expected to post much weaker growth and earnings results in the next year. That premise had some merit to it, given that Adobe is projecting that its sales growth will slow to below 10% in its fiscal 2023 compared to 12% in the fiscal year that just closed.
But some positive signs about Adobe's business shone through in its mid-December earnings update. Let's look at the biggest green flags in that report, each of which should help the company power strong returns for long-term investors.
It is true that Adobe's expansion rate is slowing. Revenue grew by just 10% in its fiscal Q4, which ended on Dec. 2, compared to a 13% gain in fiscal Q3. Growth for the fiscal year fell to 14% (after factoring in currency exchange shifts) compared to the 23% growth it achieved in 2021.
Source Fool.com
