Stock FAQs

why is adobe stock so expensive

by Edmond McKenzie Published 3 years ago Updated 2 years ago
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Adobe Stock Images are expensive because the company pays a huge commission (30%) to photographers. They also don’t allow low-quality images on their catalog, ensuring you get your money’s worth. However, if you compare the price with hiring a photographer, you’ll find Adobe’s cost relatively lower.

The stock looks expensive at first glance, trading at a high price-to-earnings ratio of about 49, but Adobe has consistently earned a high valuation for several years. The main reason is that Adobe has a long runway of growth, with a long-term addressable market of approximately $147 billion.Sep 30, 2021

Full Answer

Why is adobe so expensive?

Adobe Stock Images are expensive because the company pays a huge commission (30%) to photographers. They also don’t allow low-quality images on their catalog, ensuring you get your money’s worth. However, if you compare the price with hiring a photographer, you’ll find Adobe’s cost relatively lower .

Do I need any other Adobe product to use Adobe Stock?

Answer (1 of 4): Standard pricing on Adobe stock is 3 assets per month for $29.99. That’s $9.99 per image, of which the artist gets $3.30. Larger subscriptions have a much lower per-unit cost (as low as $0.33 per image). Compared to iStock or …

How many images can I get for free from Adobe Stock?

Why Adobe stock is so expensive? The stock looks expensive at first glance, trading at a high price-to-earnings ratio of about 49, but Adobe has consistently earned a high valuation for several years. The main reason is that Adobe has a long runway of growth, with a long-term addressable market of approximately $147 billion. ...

How do Adobe Stock subscriptions work?

Jul 27, 2021 · Investors made ADBE expensive because Adobe Stock’s monthly plans are expensive. This pricey monthly plan is in spite of the fact that Adobe Stock is …

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Is Adobe stock a good investment?

Stable growth with a reasonable valuation

They expect its adjusted EPS to increase 10% in 2022 and climb another 18% in 2023. Based on those expectations, Adobe trades at 30 times forward earnings and 12 times this year's sales.
Mar 24, 2022

Is Adobe overpriced stock?

Adobe is historically 8% overvalued, and analysts expect 17% annual returns over the next five years, 5X more than the S&P 500. Even if rising rates compress ADBE's multiples, and it grows slower than expected, 8% to 9% annual returns are likely, 50% more than the S&P 500's consensus.Jan 24, 2022

Is Adobe stock cheaper than Shutterstock?

Subscription Plans Conclusion

If you only need images, either agency will meet your needs just fine, but Shutterstock has slightly cheaper prices, while Adobe Stock has more options for small budgets, and rollover of downloads.
6 days ago

Is Adobe stock better than Shutterstock?

For on-demand options, Adobe Stock is a clear winner. It has a significantly lower price per image, and it offers more buying options. The main distinction between the two is what you get when you buy on-demand plans. Shutterstock's plans are simple; you buy a pack of 2, 5, or 25 images that you can use within a year.

Does Adobe pay dividends?

Adobe does not pay a dividend.

Will Adobe stock go up?

The 27 analysts offering 12-month price forecasts for Adobe Inc have a median target of 570.00, with a high estimate of 650.00 and a low estimate of 455.00. The median estimate represents a +45.79% increase from the last price of 390.96.

How does Adobe stock make money?

Contributing your photos, illustrations, and vector art to Adobe Stock is easy and rewarding.
  1. Prepare your photo for submission. ...
  2. Save your photo as a jpeg. ...
  3. Go to Adobe Stock. ...
  4. Assign photo properties, title, and keywords. ...
  5. Generate a model or location release. ...
  6. Submit your image for approval. ...
  7. The final result.
Jun 26, 2019

How much does adobe stock pay?

How Much Does Adobe Stock Pay? Adobe Stock pays up to 33% in royalties on images (photos, vectors, illustrations) and 35% in royalties on videos. As a result, you can earn anywhere from $0.33 to $26.40 for images and up to $70 for videos.

Is Adobe stock the same as iStock?

Adobe Stock and iStock both meet the requirements of our reviewers at a comparable rate. When comparing quality of ongoing product support, reviewers felt that iStock is the preferred option. For feature updates and roadmaps, our reviewers preferred the direction of Adobe Stock over iStock.

Why Are Getty Images so expensive?

While that partially explains the added value in the photos you can find in their library, the main reason for Getty Images' prices is the license you acquire. Most online stock agencies sell Royalty Free licenses, that is, a license with a number of preset rights for a one-time fee.

Which stock photo site pays the most?

1. Alamy. With over 60 million images, Alamy is the largest stock photo website, but they also pay well too. Photographers earn 50% of every sale, and aren't restricted to selling exclusively with Alamy.

What sells Adobe stock?

What can I sell on Adobe Stock? Photographers have the option to sell general stock photos as well as news related editorial images. There's also a Premium photography featuring specific collections and high-end visuals from select photographers. Illustrators can sell illustrations and vector art.Jul 28, 2021

Summary

I have published 15 Adobe recommendations for Seeking Alpha. The stock is now +704.8% since my first February 20, 2015 Adobe investing idea.

High-Quality, Profitable Investments Are Pricey

Yes, ADBE is too expensive. Adobe has higher valuation ratios than its SaaS peers, Google ( GOOGL) and Microsoft ( MSFT ). ADBE touts a TTM P/E (54.24) and TTM P/S (20.84) ratios than GOOGL and MSFT. Google only has 35.45 and 9.16. Microsoft has 39.47 and 13.69. Investors making ADBE more expensive than MSFT is very amusing. Microsoft is no.

The Importance of Substance 3D

The original sales pitch of Allegorithmic for Substance 3D was for film/movie entertainment and gaming assets creation. Adobe is now marketing Substance 3D for VR/AR content creation and visualization. The exuberant ADBE bulls will only get more enthusiastic. Adobe is now monetizing in the fast-growing $35 billion AR/VR industry.

Crowd-sourced Adobe Stock Is Why ADBE Is Expensive

There are lazy creative professionals (like me) who rely on templates and royalty-free Adobe Stock assets to quickly create designs/mock-ups for Upwork customers.

Conclusion

ADBE could even get more expensive if Adobe starts competing against Autodesk’s $3,115/year Architecture, Engineering & Construction software suite. Architects, engineers, interior designers, and construction managers will appreciate the affordable AR/VR features of Substance 3D Stager and Substance 3D modeler.

Summary

Adobe is selling for its highest overall valuation since the 2000-01 technology bubble peak.

Peak Earnings Growth?

With an equity capitalization approaching $300 billion today, Adobe is one of the most valuable corporations in the world. From its near-monopoly position in global creative software, gross and net profit margins are some of the highest and most desirable to own of any company.

Overvaluation Story

What valuation does a 15% growth rate deserve? Well, that depends on the quality of cash profits and other inputs like inflation and interest rates. With interest rates low and free cash flow generation likely to remain strong under a myriad of macroeconomic backdrops, Adobe is worth more than the typical business setup.

Overbought Stock Chart

It is very interesting that over the last several months, investors have been clamoring to buy Adobe with such an unworkable valuation setup. In fact, the buying enthusiasm has pushed many momentum indicators well into overbought territory.

Final Thoughts

The technical chart conclusion is a top could be formed in a matter of days or weeks. Pulling all the valuation ideas together, and considering the overbought condition, I am projecting a 20-30% risk-off period for Adobe from $625 in July 2021. If Adobe’s potential upside is 10% the next 6-12 months vs.

Why is Adobe so expensive?

Adobe is expensive because it can be expensive. A basic business practice is to sell your product or service for as much as the market will support. Adobe has first rate products, in some cases products unmatched by others. Basically, they will charge as much as they believe they can.

Is Adobe a large company?

Adobe is a very large company. At the beginning, Adobe was relying on the actual users as professionals for their products and had to compete with very strong software out there. There was Coreldraw!, Canvas, Freehand, Arts & Letters, etc. whose software did what the core of a graphic software is; drawing.

Is Adobe the best?

Adobe products individually aren’t “the best,” and some are “the worst,” but collectively comprise an effective toolset that is actually not expensively priced considering that one gets their quiver filled with a solution to everything in digital art.

Is Affinity better than Adobe?

2021-0329 Addition: Affinity software has a few products that are way faster and better than Adobe’s behemoth ILL ustrator. True, they are not as “feature” savvy as Adobe’s, however, many of those features are just useless for real world work.

What is a subscription plan?

Subscription plans provide access to royalty-free, high-resolution standard images, as well as standard templates, 3D assets, and music tracks. Subscriptions do not include premium images, premium templates, premium 3D, Editorial assets, video, or standard images with an extended license.

Can you print a photo on a coffee mug?

For example, you can't print the image on a coffee mug to sell. The print run limit doesn't apply when the image is only for display on websites, social media, or mobile applications. If you need large print runs or you're using the asset in resale, you need to purchase an extended license.

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