I know nobody actually knows, but where do we think the floor is for Adobe?

Original Reddit post

Bullish Adobe on cheap forward earnings and a durable moat from high switching/training costs and enterprise license entrenchment.

ADBE — LONG The author argues Adobe is attractively valued at 15x forward non-GAAP earnings for a SaaS business with 89% gross margins, and doubts it can be disrupted because switching providers would require employers to bear high retraining costs. He notes Adobe products are taught in colleges (Acrobat, Premiere) and that 90% of licenses are provided by businesses, making them a small share of total corporate expenses and thus sticky. He admits he doesn't know when it will bottom but cannot imagine Adobe ever falling to 10x earnings.

They are trading at 15 times forward non gaap earnings, it’s a SAAS business model with 89% gross margins. My personal opinion is that Adobe cannot be disrupted due to the high training cost it would take for employers to switch to another provider.