Investopedia: Adobe's Transition Is Necessary, But A Little Turbulent

Another of the many quirks of Wall Street is that pretty much everybody can know what's going on, and yet still show some surprise when it shows up in the financials. Adobe (Nasdaq:ADBE) is in the middle of a business model transition as it shifts customers from licenses to subscriptions, and that process is messing with the reported revenue numbers. While the pre-market indications do not suggest that investors are too worried about Adobe's performance, the valuation still suggests something less than a full buy-in to Adobe's ongoing growth prospects.

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