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Adobe: Your subs at work!

Adobe appears to have tried to market test a 100 percent increase in it’s monthly subscription for its Creative Cloud photography plan this month, quickly back-tracking when it’s latest profit enhancement scam  scheme provoked a collective gnashing of teeth and rending of garments among photographers.

It then added insult to injury by informing the photographic community, presumably with a straight corporate face that, ‘From time to time, we run tests on Adobe.com which cover a range of items, including Plan options that may or may not be presented to all visitors to Adobe.com. We are currently running a number of tests on Adobe.com.’

While many photographers seem to hate the company (over 80 percent of readers in our recent poll described the subscription model as ‘a scam’) the same can’t be said for Wall Street. Adobe is one of the darlings of the Nasdaq. Since it commenced rolling out the subscription model in 2012, the stock price has increased more than 8 times.

Adobe share price
Adobe’s share price is almost four times what it was five years ago. (Source: Nabtrade)

But don’t take Inside Imaging’s word for it. This is what a Morgan Stanley analysts said about Adobe at the end of April: ‘We think Adobe’s strong competitive moat, best-in-class profitability and model conservatism warrants a valuation at least in line with large cap software peers. The company has a ‘durable’ earnings growth narrative. 

He said Adobe will improve its earnings per share by more than 20 percent annually over the next three years, and the company has a better growth potential than most other technology companies. 

The share price has moved up from $200 to close to $300 in the last 12 months. Earnings per share growth over that period was over 50 percent.

Over the five years of share price growth (see above), earnings per share growth has been 59 percent per year.

– So even though they may have to pay Adobe a monthly tribute for the rest of their working lives, it’s perhaps of some comfort to Australian photographers that they are doing their bit for the US economy and well-heeled superannuants in California and Florida!

Maybe photographers should get with the program and purchase Adobe shares themselves – the dividends could pay for their subscriptions!

Related: https://www.insideimaging.com.au/2019/adobe-photography-plan-prices-to-double/

 

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