Adobe: Why It May Be Time To Take Some Profits

Sep. 13, 2021 12:05 AM ETAdobe Inc. (ADBE)13 Comments
StockBros Research profile picture
StockBros Research


  • Adobe has exceeded our price targets and the valuation now appears to be a little stretched.
  • The higher valuation puts the company at a higher risk for drawdowns if discount rates rise or earnings disappoint even slightly.
  • We are not necessarily bearish, and would rate it a hold for buy-and-hold investors. However, for more active investors, it may be time to take some profits.

Entrance to Adobe San Francisco office location in historic Baker and Hamilton warehouse
David Tran/iStock Editorial via Getty Images

Adobe (NASDAQ:ADBE) is a fantastic company with strong competitive advantages which we covered in our previous articles:

  1. Adobe Stock: Here's Why It Is Undervalued Despite High Valuation Multiples
  2. Despite Inflation Fears, Adobe's Valuation Has

This article was written by

StockBros Research profile picture
Two bros that talk about stocks, mainly GARP (growth at a reasonable price) stocks, but we look for opportunities everywhere. We don't have a specified time horizon. We invest in a stock for as long as our thesis holds true, and get out when the facts change. In addition, we've developed market-beating algorithms with python that help us find attractive investment opportunities within our own portfolios.Website: www.stockbrosresearch.comTwitter: @StockBrosTrades

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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