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

Listen to this episode from The Intrinsic Value Podcast - The Investor’s Podcast Network on Spotify. 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. And much, much more! *Disclaimer: Slight timestamp discrepancies may occur due to podcast platform differences. BOOKS AND RESOURCES Get smarter about valuing businesses in just a few minutes each week through our newsletter, ⁠⁠The Intrinsic Value Newsletter⁠⁠. From Quartr’s Insights blog: Adobe: Equipping the Architects of Digital Expression. Adobe’s Investor Day Summit. Value Investor’s Club pitch for Adobe. Never Sell podcast on Adobe. Check out our previous Intrinsic Value breakdowns: ⁠⁠Nintendo⁠⁠, ⁠⁠Airbnb⁠⁠, ⁠⁠AutoZone⁠⁠, ⁠⁠Alphabet⁠⁠, ⁠⁠Ulta⁠⁠, ⁠⁠John Deere⁠⁠, and ⁠⁠Madison Square Garden Sports⁠⁠. Check out the books mentioned in the podcast ⁠⁠here⁠⁠. Enjoy ad-free episodes when you subscribe to our ⁠⁠Premium Feed⁠⁠. NEW TO THE SHOW? Follow our official social media accounts: ⁠⁠X (Twitter)⁠⁠ | ⁠⁠LinkedIn⁠⁠ | ⁠⁠Instagram⁠⁠ | ⁠⁠Facebook⁠⁠ | ⁠⁠TikTok⁠⁠. Browse through all our episodes (complete with transcripts) ⁠⁠here⁠⁠. Try Shawn's favorite tool for picking stock winners and managing our portfolios: ⁠⁠TIP Finance⁠⁠. Enjoy exclusive perks from our ⁠⁠favorite Apps and Services⁠⁠. Learn how to better start, manage, and grow your business with the ⁠⁠best business podcasts⁠⁠. SPONSORS Support our free podcast by supporting our ⁠⁠sponsors⁠⁠:⁠⁠ CFI Education Airbnb Connect with Shawn: ⁠⁠Twitter⁠⁠ | ⁠⁠LinkedIn⁠⁠ | ⁠⁠Email⁠⁠ Connect with Daniel: ⁠⁠Twitter⁠⁠ | ⁠⁠LinkedIn⁠⁠ | ⁠⁠Email⁠⁠ HELP US OUT! Help us reach new listeners by leaving us a ⁠⁠rating and review⁠⁠ on ⁠⁠Spotify⁠⁠! It takes less than 30 seconds and really helps our show grow, which allows us to bring on even better guests for you all! Thank you – we really appreciate it!  Learn more about your ad choices. Visit megaphone.fm/adchoicesSupport our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm