[adventured]

Some of it surely has to do with the hype around Adobe and their switch to recurring revenue, SaaS style products.

It has thrown their stock through the roof. Their stock was essentially dead in the water from 2000 to 2012. $30 to $185 since then. Pull back on their chart to the max time frame, and it's hilarious looking in the spike versus the past.

They've been given a ~60 PE ratio, for 15%-20% growth and a rather old-fashion boring product. But it's cloud! Recurring revenue! Throw enough of that together with a stock market bubble and you get a 80% jump in the stock in one year.

That's the most plausible argument in favor of Canva getting their crazy valuation, it matches the insanity of Adobe's valuation. It's obvious what happens on the back side of that insanity too.

[JauntyHatAngle]

It does seem like the tech industry has a particular culpability for market valuations not matching actual technical potential.

Cloud was the old (but still functional) blockchain when it comes to buzz words.