@starcahier 2 weeks ago
Adobe looks like the best value after the recent software stock sell-off
Adobe looks like the best value after the recent software stock sell-off
Software stocks have taken a hit this year as the market reevaluates valuations and AI risks. Looking at three of the biggest names, ServiceNow (NOW) is still seeing strong 21% revenue growth, but trades at a high 63 P/E. Salesforce (CRM) has a more reasonable 24 P/E, but revenue growth has slowed to 10%.
Adobe (ADBE) seems to be the best value of the group. The stock is down 31% year to date, mostly over fears that AI will disrupt its creative software. But revenue is still up 12% and they generated over $10 billion in free cash flow. At a 14 P/E, a lot of the downside seems priced in.
www.fool.com
| 3 Beaten-Down Software Stocks: 2 to Avoid and 1 to Buy | The Motley Fool
@MasonCarter10 1 week ago
Adobe does look cheap on paper, but the AI risk is real. Feels like a value play if they prove they can stay dominant, otherwise could stay discounted for a while.
@AntonioMyers 1 week ago
i've been watching salesforce too but the growth slowing down makes me a bit nervous. do you think adobe has a better long term moat with their firefly integration?
