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Adobe (ADBE) to Boost Creative Capabilities with ContentCal

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Adobe ADBE has reached a definitive agreement to acquire London-based social marketing startup ContentCal in order to strengthen its creative offering.

ContentCal operates a platform that helps businesses create and publish their marketing content online.

Additionally, ContentCal’s content marketing and social media solution automates the process of planning, publishing and reporting content on various social media platforms such as Twitter, Facebook and LinkedIn to name a few. .

In addition, the startup has gained ground with several individuals and companies thanks to its robust platform.

Therefore, we believe that the latest initiative is likely to boost Adobe’s momentum among various businesses, especially small businesses for which ContentCal’s marketing solution has proven to be very helpful in achieving work efficiency.

The acquisition under review is expected to be finalized in the first quarter of fiscal 2022.

Growth prospects

According to a Research Dive report, the global content for content marketing market is expected to generate revenues worth $ 137.2 million by 2026. The figure is expected to register a CAGR of 16.2% over the period 2020-2027.

The increasing adoption of content marketing tools and software by businesses to accelerate their customer engagement rate is driving the growth of this particular market.

In addition, companies see these tools as a solid solution for their business, promoting their products and building relationships with customers.

Additionally, the growing proliferation of internet streaming remains a major growth factor behind the rise of content marketing.

We note that with ContentCal, Adobe will be well positioned to capitalize on the aforementioned growth opportunities.

Adobe Inc. Revenue (TTM)

Adobe Inc. revenue-ttm | Adobe Inc.

In addition, Adobe is likely to increase competition for Hub Spot HUBS, a provider of inbound marketing and sales applications.

HubSpot helps businesses attract customers through search engine optimization, social media, blogging, website content management, and marketing automation. HUBS is already under competitive pressure from Adobe’s Digital Media Solutions segment.

Focus on creative tools

The latest move bodes well for Adobe’s continued efforts to strengthen its creative tools.

Additionally, strategic acquisitions have played an important role in shaping Adobe’s growth trajectory in the digital media market.

Adobe recently completed the acquisition of a cloud-based video review and collaboration platform named Frame.io, which attests to the facts mentioned above. Frame.io’s solutions simplify the production process, and as a result, video editors and project stakeholders can collaborate seamlessly by leveraging cloud-centric workflows.

Adobe combined Frame.io’s solutions with its creative software like Adobe Photoshop, Adobe Premier Pro and other Adobe Creative Cloud applications

We believe that all of these efforts will likely increase the adoption rate of Adobe Creative Cloud, which in turn will drive the growth of Adobe’s digital media segment.

However, declining end-market demand and increasing acquisition spending remain major surpluses for Adobe in the near term.

Zacks rank and actions to consider

Currently, Adobe carries a Zacks Rank # 4 (Sell).

Investors interested in the wider tech sector may want to consider stocks such as Advanced micro-systems AMD and Mimecast limited MIME, each currently wearing a Zacks Rank # 2 (Buy). You can see The full list of Zacks # 1 Rank (Strong Buy) stocks today here.

Advanced Micro Devices has gained 57.9% year-to-date. The stock’s long-term earnings growth rate is currently projected at 46.2%.

Mimecast has gained 39.7% year-to-date. The stock’s long-term earnings growth rate is currently projected at 35%.

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Advanced Micro Devices, Inc. (AMD): Free Stock Analysis Report

Adobe Inc. (ADBE): Free Stock Analysis Report

HubSpot, Inc. (HUBS): Free Stock Analysis Report

Mimecast Limited (MIME): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


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