Adobe confident despite trade war
Creative software maker Adobe remains confident of its performance this year, despite recent accelerations of the trade war between China and the US. Last week, President Trump added further tariffs on Chinese goods after talks broke down. Despite his threats not to retaliate, President Xi did exactly that. Markets this week are feeling the effect. But Adobe’s underlying business, according to its CEO, isn’t.
Adobe’s share price is up by 21% so far this year
Source: Yahoo Finance
In a recent interview with CNBC, Adobe President and CEO, Shantanu Narayen, said that he was “bullish” on the company’s outlook this year. The reason that the American firm isn’t concerned about its creative and enterprise businesses performance during the trade war is simple: “Our exposure to China in both of those is fairly minimal. I think if you look at what we’ve been able to accomplish in the long run and the tailwinds that we have, we continue to be really optimistic about Adobe’s prospects.”
Adobe has become THE provider of choice for trends towards creativity and design – two areas that, Narayen says “have never been more important.” He made these comments on the back of strong results – on Tuesday, the company revealed that its digital media segment brought in $1.78 billion in revenue for its most recent quarter. A whopping $1.49 billion of that was down to its creative business, which showed a 22% rise against the year-ago quarter.
He continued to explain that Adobe’s business is really about helping companies attract, engage, and create an experience for customers: “Adobe is the content provider that enables all of these streams to be delivered with incredible content. Given design is more important, given mobile devices are every single place, that’s a tremendous tailwind.” This is all part of a digital transformation that Adobe is perfectly positioned to enable: “The need to transform is also front and centre for every C-level executive. Given Adobe’s been through our own transformation and has software, they want to hear from us and they want to experience that same benefit that we have been able to see.”
Dominion holds Adobe in its Global Trends Ecommerce Fund.
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