Adobe shares have lagged this year, declining ~20%, despite strong fundamentals and raised guidance, creating an attractive entry point for long-term investors. Despite fears that AI will crowd out Adobe, the company has released AI tools (particularly Firefly) that are expected to reach $250 million in ARR by year-end. The company notes that AI products are also bringing in brand-new subscribers to Adobe, creating cross-sell opportunities.
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Adobe Systems (ADBE) reached $345.62 at the closing of the latest trading day, reflecting a +2.03% change compared to its last close.
We actively rebalanced the portfolio, adding Broadcom and Marvell to capitalize on AI chip growth and trimming Taiwan Semiconductor due to geopolitical risks. Initiated new positions in ServiceNow, Airbus, and Linde to diversify growth exposure and benefit from secular trends in SaaS, aerospace, and industrial gases. Exited Target, ICON, and Adobe due to macro headwinds, delayed recoveries, and rising competitive pressures from AI, respectively, to manage portfolio risk.
Zacks.com users have recently been watching Adobe (ADBE) quite a bit. Thus, it is worth knowing the facts that could determine the stock's prospects.
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Adobe (ADBE) has received quite a bit of attention from Zacks.com users lately. Therefore, it is wise to be aware of the facts that can impact the stock's prospects.
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