Computer software company Adobe Inc. (NASDAQ: ADBE) recently revealed that it has expanded its partnership with automobile manufacturer BMW Group to enhance the digital capabilities of the company in its sales and marketing division.
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Following the news, shares of Adobe gained more than 5% to close at $444.51 during yesterday’s extended trade.
Strategic Impact
The online mode of evaluating an automobile for purchase is gaining prominence by the day. To this end, BMW is looking to leverage Adobe Experience Cloud to offer customized digital buying experiences to its customers. This is also in line with BMW’s strategy to sell almost a quarter of its vehicles online within the next three years.
Additionally, the customers stand to benefit from getting delivery of their chosen BMW car at their doorsteps or they can pay a visit to the nearest car dealer and buy a car using their online history.
Management Commentary
President of Digital Experience Business at Adobe, Anil Chakravarthy, said “Customers want experiences that are tailored toward their individual interests and needs. The BMW Group impressively demonstrates that it serves the premium segment with a premium experience across all touchpoints. This creates trusted, loyal relationships with customers. We are delighted to support the BMW Group as a partner in its digital transformation.”
Analyst Rating
Yesterday, Mizuho Securities analyst Gregg Moskowitz reiterated a Buy rating on the stock with a price target of $600, which implies upside potential of 35.6% from current levels.
Consensus among analysts is a Strong Buy based on 16 Buys and five Holds. The average Adobe stock prediction of $634.90 implies upside potential of 43.5% from current levels. Shares have declined 1.9% over the past year.
TipRanks Website Traffic
TipRanks’ Website Traffic Tool, which uses data from SEMrush Holdings (SEMR), the world’s biggest website usage monitoring service, offers insight into Adobe’s performance this quarter.
According to the tool, the Adobe website recorded a 62.7% monthly decline in global visits in February, compared to the same period last year. Further, year-to-date, Adobe website traffic declined 17.47%, compared to the previous year.
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