TIVP019: Adobe (ADBE): Designing a Creative Empire w/ Shawn O’Malley & Daniel Mahncke

From The Intrinsic Value Podcast - The Investor’s Podcast Network The Investor's Podcast Network

Shawn O’Malley and Daniel Mahncke break down Adobe (ticker: ADBE), a leading software company providing end-to-end solutions for creative professionals, from design and creation to marketing and performance measurement. Through apps like Photoshop and After Effects, Adobe offers an industry-leading suite of productivity tools for creatives, including freelancers designers, Hollywood design studios, and everyone inbetween. Excel is to the financial world as Adobe is to the creative world, you might say.

In this episode, you’ll learn how Adobe grew out of a garage and became tangled with Apple early on, how the company transitioned to a cloud-based subscription model, whether AI risks to Adobe’s business are overstated, how Adobe is implementing AI into its tool, whether Adobe is as attractively valued as it seems, plus so much more!

Prefer to watch? Click ⁠⁠here⁠⁠ to watch this episode on YouTube.

IN THIS EPISODE, YOU’LL LEARN

00:00 - Intro

00:43 - Adobe’s origin story and how it was created out of a garage.

07:24 - What were Adobe’s first few popular products and how Apple elevated Adobe’s business.

16:02 - Why Adobe transitioned to a subscription-based business model in 2013.

19:36 - Why the market has soured on Adobe’s otherwise wonderfully profitable and growing business.

24:40 - How Adobe is responding to Canva, Figma, and disruptions from AI.

39:32 - What Adobe is doing to keep the next generation of designers using its products.

01:04:50 - The biggest risks to Adobe’s continued dominance.

01:07:41 - Whether Adobe is attractively valued at its current beaten down levels.

01:16:22 - Whether Shawn & Daniel add ADBE to The Intrinsic Value Portfolio.