Adobe Stock News

The artificial intelligence (AI) boom is still in full swing, and experts agree that most of its shareholder value creation still lies ahead. It's like the internet in the early 2000s, personal computers in the 1980s and 1990s, or gas-powered cars replacing horse-drawn carriages long before that.

Adobe's strong fundamentals and consistent profitability make it a compelling long-term investment, despite recent stock price declines and market noise. The company's high gross margin, operating margin, and return on invested capital highlight its operational efficiency and competitive advantage. Adobe's strategic use of AI, including tools like Firefly, enhances its product offerings and dee...

Every investor is now aware of the current sentiment around the technology sector. A never-ending wave of volatility and negativity has taken hold of the best and dearest names in the space due to President Trump's recent rollout of trade tariffs against some of the biggest trading partners in the United States economy, particularly China and other Asian powerhouses.

Palantir (PLTR 2.15%) is one of the most valuable companies in the world, with a market cap of around $250 billion. That places it within the top 50 largest companies, but some (including myself) question whether this is a legitimate valuation.

The stock market is quietly staging a comeback following a rough start to 2025. While still down about 9% year to date as of this writing, the innovation-heavy Nasdaq Composite index has rallied by more than 16% from its recent low.

Adobe's valuation has dropped significantly, making it an attractive buy despite AI competition and macroeconomic uncertainties, with a forward P/E ratio of ~17x. Adobe continues to achieve ~10% y/y revenue growth and maintains a high pro forma operating margin of 48%. It continues to build up its ARR, shielding it from heightened churn. Adobe's AI-powered tools are gaining traction, contributi...

ADBE has been undeservedly sold off since the 52 week heights, given its promising AI monetization cadence, growing ARRs, and expanding profit margins. If anything, we are likely to see the SaaS company outperform its sandbagged FY2025 guidance, given the robust FQ1'25 performance metrics. This is on top of the ongoing share retirement, as the management utilizes much of its cash flow to return...

Adobe said Thursday that it will release its Firefly AI image generator on both iOS and Android "soon," without giving a specific date. Adobe also announced the launch of its latest AI models, Firefly Image Model 4 and Firefly Image Model 4 Ultra, and said its new Firefly Video Model is now generally available.