Here’s Why Polen Capital Remains Optimistic in Adobe (ADBE)

Polen Capital, an investment management firm, released its “Polen Global Growth” third quarter 2023 investor letter, a copy of which can be downloaded here. Polen Capital’s Global Growth Composite Portfolio, referred to as the “Portfolio,” experienced a decrease of -3.19% and -3.46% gross and net of fees, which closely tracked the performance of the MSCI ACWI, known as the “Index,” which declined by -3.40% over the quarter. Take a moment to review the fund’s top 5 holdings to gain insights into their primary investment choices for 2023.

In its Q3 2023 investor letter, Polen Global Growth mentioned Adobe Inc. (NASDAQ:ADBE) and explained its insights for the company. Adobe Inc. (NASDAQ:ADBE) is a San Jose, California-based multinational computer software company with a $256.6 billion market capitalization. Adobe Inc. (NASDAQ:ADBE) delivered a 67.49% return since the beginning of the year, while its 12-month returns are up by 97.26%. The stock closed at $563.66 per share on November 3, 2023.

Here is what Polen Global Growth has to say about Adobe Inc. (NASDAQ:ADBE) in its Q3 2023 investor letter:

“Both Alphabet and Adobe’s businesses continue to perform well. With respect to Adobe, the most recent quarter delivered more of the same with constant currency revenue growing 13%, margin expansion, and over 2% of shares outstanding repurchased for non-GAAP earnings growth of over 20%. We believe its approach to GenAI through Firefly, which guarantees safe content because it trains on Adobe Stock, will continue to be attractive to enterprises. The counter to GenAI, and something we are keeping an eye on with Alphabet and Adobe, is that it requires heavy investment. While both businesses can leverage their scale and manage costs in other areas, we expect the investment in future growth through GenAI will weigh on company-wide margins over the near term.”

Our calculations show that Adobe Inc. (NASDAQ:ADBE) ranks 19th on our list of the 30 Most Popular Stocks Among Hedge Funds. Adobe Inc. (NASDAQ:ADBE) was in 109 hedge fund portfolios at the end of the second quarter of 2023, compared to 99 funds in the previous quarter. Adobe Inc. (NASDAQ:ADBE) delivered a 6.98% return in the past 3 months. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters Q3 2023 page.

Suggested Articles:

• 12 Best Small-Cap Biotech Stocks with Massive Potential According to Hedge Funds
• 10 Best Social Media Platforms For eCommerce
• 12 Stocks that Could Skyrocket According to Investment Newsletters

Disclosure: None. This article is originally published at Insider Monkey.