Adobe definitely seems to have the wind at its back these days, with its Flash technology ubiquitous in web video. That edge was reinforced yesterday with a widely-loved unveiling of the company’s Apollo technology at the Engage event yesterday. The latter is a compelling new platform for building online applications, as well as replicating that functionality when (perish the thought) you’re not connected to the InterWeb.
Is it time to make a bullish case for the company’s stock? Out of 30 analysts covering the stock, 22 currently have it as a Buy or Strong Buy, which is slightly more boosters than a quarter ago. The stock is up a teensy 2% from where it was at this time a year ago, and down almost 2% from where it started the year.
From a valuation point of view, the company’s stock is trading at 23x forward earnings, while it is forecast to turn in something like 17% earnings growth. That doesn’t sound compelling, unless investors are underestimating the contribution of the new Apollo platform. Are they? More in a subsequent post.