NEW YORK ( TheStreet) -- Leading up to Adobe's (ADBE - Get Report) third-quarter earnings results, I wasn't entirely convinced that management could sustain the company's incredible run, which included a 38% year-to-date surge in the stock. Although Adobe had made meaningful progress converting its business from a boxed software company to a cloud subscription model, the Street sentiment -- I believe -- was getting too bullish.The changeover was necessary because Adobe has struggled to grow revenue and margins on its once-dominant creative suite of applications -- the package that includes popular titles like Pagemaker and Dreamweaver. Complicating matters even further: that the stock still carried a price-to-earnings ratio of 59, which was 6 times and 5 times that of Microsoft (MSFT - Get Report) and Oracle (ORCL), respectively, didn't suggest that there was any value left. Although Adobe's numbers did arrive better than expected, the valuation concerns -- in my view -- have not gone away.
Adobe's Sustenance Shouldn't Spur Investors to Flip Their Grip
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