The valuation is suspected to be too high. Can Adobe's new f...

The valuation is suspected to be too high. Can Adobe's new financial report prove the company's strength?

$Adobe(ADBE.US)$ Adobe will release the third quarter of 2021 financial report after the US stock market on Tuesday, September 21. So far this year, Adobe stock price has risen 30.86%.

From the perspective of stock price trends, Adobe is an outstanding company with high profit margins, and over time, the company's profit margins may even increase. However, excessive returns may push up the negative impact of the current Adobe valuation.

Although Adobe's current performance is good, there are downside risks, and the higher valuation makes the stock more vulnerable to disappointing earnings. Can Adobe prove that its valuation is appropriate in the new quarter's earnings report?

Article excerpted from the US Stock Research Agency