Here's How Much Investing $1,000 In Adobe Stock 5 Years Ago Would Be Worth Today

Investors who have owned stocks since 2016 generally have experienced some big gains. In fact, the SPDR S&P 500 SPY total return in the past five years is 114.9%. But there is no question some big-name stocks performed better than others along the way.

Adobe’s Big Run: One company that has been a great investment in the past five years is Adobe Inc ADBE.

Adobe has spent the past five years building a dominant market position in the high-growth field of creative software. Key products include Photoshop, Illustrator and InDesign. In addition, it has generated impressive cash flow from its high-margin software business that it has used to aggressively buy back stock.

At the beginning of 2016, Adobe shares were trading at around $92. Soon after, Adobe dropped as low as $71.21 during a broad market sell-off due to concerns about slowing growth in China. Fortunately, that level would mark the stock’s low point of the past five years as Adobe consistently put up impressive growth numbers.

The stock broke $100 for the first time in mid-2016 and $200 in early 2018. Adobe peaked at $386.74 in early 2020 prior to the COVID-19 pandemic scare.

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Adobe In 2021, Beyond: Adobe shares dropped as low as $255.13 when the market bottomed in March 2020. However, a rise in remote work during the crisis ended up being a bullish catalyst for Adobe’s business. The stock was back at new all-time highs by mid-2020 and ultimately peaked at $536.88 before pulling back to around $445.

Adobe investors who bought five years ago and held on have generated an impressive return on their investment. In fact, $1,000 in Adobe stock bought in 2016 would be worth about $5,209 today.

Looking ahead, analysts are expecting Adobe’s momentum to continue in the next 12 months. The average price target among the 23 analysts covering the stock is $571, suggesting just 28.4% upside from current levels.

(Photo: Adobe Chief Product Officer, Scott Belsky, takes the stage at Adobe MAX in Los Angeles, California, on Monday, Nov. 4, 2019. Photo courtesy of Adobe)