Adobe Systems (ADBE) concluded the recent trading session at $333.26, signifying a +1.22% move from its prior day's close.
ADBE's AI-fueled growth boosts revenue guidance, but stretched valuation and fierce competition weigh on investor sentiment.
ADBE's Digital Media growth, powered by Acrobat and Express with AI features like Firefly, fuels $4.46B in quarterly revenues despite rising competition.
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The digitization of the economy is accelerating, and more business owners are beginning to realize that having an online or social media presence is one of the most critical factors for success in this new digital landscape. That is precisely where companies in the technology sector are set up for success, as long as they directly aid in this rotation, and one of them is offering investors a fantastic risk-to-reward opportunity for the coming quarters.
Kash Rangan, Goldman Sachs Senior Software Analyst, joins 'Closing Bell Overtime' to talk the state of AI adoption, where there is still growth opportunity in the space, return on investment, and more.
Adobe, in its annual online shopping forecast, released today, is predicting that U.S. ecommerce sales will hit $253.4 billion this holiday season, up 5.3% over last year.
Adobe stock (NASDAQ: ADBE) is down 22% this year, primarily due to rising concerns centered on rising competition from both lower-cost creative software alternatives and new AI-powered tools, combined with signs of slowing growth in the company's subscription business. Despite these headwinds, we believe the stock warrants a close look.
Adobe is one of the most undervalued AI-to-be plays in the tech world. The stock is down 17% since the start of the year as understandable concerns about its lack of AI growth expand. Generative AI consumption accelerated with 29 billion generations, and video generations grew nearly 40% since last quarter. I think this positive is getting overlooked.
Malaysia Aviation Group, the operator of national carrier Malaysia Airlines, on Monday announced a collaboration with Adobe, Google, Skyscanner and Visa for its online travel booking services.
ADBE has out delivered its FY2025 targets, as observed in the robust FQ3'25 performance metrics, the increased subscriptions, and the higher GenAI consumption trends. Their increased push into the education sector across "students, faculty and staff" also locks them into the creative ecosystem before their eventual transition to working professionals. ADBE's AI-enabled offerings have been adopted by Dentsu as well, the largest advertising agency group in Japan and the fifth-largest in the world.
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