To day, adobe is trading at around 400 forty dollars per share with a market cap of 205 billion. Since its ipo the stock has been a consistent out performer relative to the s an p 500. Despite the contraction in the stock price, the business is actually still growing. Management expects the company's revenue to grow 14 % over the next year,. and earnings per share to grow roughly seven % next year. Free cash flows grew at an average rate of return of 28 % over the past five years but we shouldn't put too much weight on that, as they were really starting from a low base five years ago.
IN THIS EPISODE, YOU’LL LEARN:
02:14 - What Adobe does as a business.
07:41 - Why the economics of Adobe’s business are potentially attractive for investors.
07:41 - Clay’s assessment of Adobe’s management team.
13:15 - What return Clay expects from Adobe over the next 10 years.
And much, much more!
*Disclaimer: Slight timestamp discrepancies may occur due to podcast platform differences.
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