Adobe Systems Incorporated (ADBE): This Tech Stock Will Not Let You Down

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All in all

Adobe is a very good performing stock. Successful marketing of its Creative and Marketing Clouds can bring in a lot of revenue for the company. The main advantage of subscriptions would be generation of a regular cash flow for the company. The company has the potential for high earnings in the quarters to come. However, the stock is trading at a very high PE of 40, and this makes me a bit apprehensive about entering into a long position at the moment. The best bet would be to wait a bit until the stock falls from its near 52 week high rate and then take the plunge.

Sonam Chamaria has no position in any stocks mentioned. The Motley Fool recommends Adobe Systems and Apple. The Motley Fool owns shares of Apple, Microsoft, and Oracle.

The article This Tech Stock Will Not Let You Down originally appeared on Fool.com and is written by Sonam Chamaria.

Sonam is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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