Adobe’s Earnings Are on Track to Grow About Eightfold in a Decade. Why Has Its Stock Lagged the Market So Badly?
A decade ago, shares of Adobe (NASDAQ:ADBE) closed at about $109. Today, they trade near $243 as I write. That’s a rise of about 123%, enough to turn a $10,000 investment into about $22,300.
It seems OK until you compare it to the market. In the same period, $10,000 in an S&P 500 (SNPINDEX:^GSPC) index fund (with dividends reinvested) rose to around $42,100, a gain of about 321%.
And because Adobe doesn’t pay a dividend, its stock price is the full return.
Source: www.fool.com — article syndicated from the publisher’s feed; all rights remain with the original publisher.