CHINA - 2023/11/03: In this photo illustration, the American provider of stock photography, stock ... [+] footage, stock music, and editing tools Shutterstock logo seen displayed on a smartphone with an Artificial intelligence (AI) chip and symbol in the background. (Photo Illustration by Budrul Chukrut/SOPA Images/LightRocket via Getty Images)SOPA Images/LightRocket via Getty ImagesThe stock images, videos, and music providers – Getty Images and Shutterstock - have agreed to merge to create a $3.7 billion ...

Background and Expertise - The individual has over 10 years of experience as a software engineer and more than 5 years dedicated to stock research and investing [1] - A strong interest in analyzing stocks and developing long-term investment strategies is driven by a background in computer science [1] - The focus is primarily on long-term investment picks [1] Disclosure and Independence - No stock, option, or similar derivative positions are held in any of the mentioned companies, and there are no plans to initiate such positions within the next 72 hours [2] - The article expresses the individual's own opinions and is not influenced by any business relationships with the mentioned companies [2] - The individual is not receiving compensation for the article other than from Seeking Alpha [2] Seeking Alpha's Position - Past performance is not indicative of future results, and no specific investment recommendations are provided [3] - The views expressed may not reflect those of Seeking Alpha as a whole [3] - Seeking Alpha is not a licensed securities dealer, broker, or US investment adviser, and its analysts may not be licensed or certified by any regulatory body [3]

Online Spending Growth - Online spending during the holiday season (Nov 1 to Dec 31) increased by 8.7% year-over-year, reaching $241.4 billion [1] - The growth was driven by increased demand rather than higher prices, as e-commerce prices have fallen for 27 consecutive months [2] - Deep discounts played a significant role, with a 1% drop in typical prices leading to a 1% increase in demand, resulting in an additional $2.25 billion in online spending [5] Retail Industry Performance - The strong e-commerce results are a positive sign for the retail industry, with major retailers like Walmart, Target, and Macy's set to report their fiscal Q4 results in late February [3] - Overall U.S. retail sales (excluding automotive) for the holiday season (Nov 1 to Dec 24) rose 3.8% year-over-year, according to Mastercard SpendingPulse [4] Consumer Behavior Trends - Consumers are adopting an "event-ized buying" pattern, waiting for sales events like Amazon Prime Day, President's Day, and Memorial Day to make nonessential purchases [6] - Shoppers tend to overindex their spending during specific moments when they perceive value, leading to growth spikes followed by periods of slower growth [7] Top Performing Categories - Electronics, apparel, and furniture/home goods were the top three categories, contributing to 54% of total online spending [8] - Groceries saw the highest year-over-year growth at nearly 13%, reaching $21.5 billion, followed by cosmetics at 12.2% growth to $7.7 billion [8] - Electronics had the highest discounts at 30.1%, followed by toys (28%), TVs (24.2%), and apparel (23.2%) [7]

AI Industry Overview - AI advancements drove stock prices of major companies higher in 2024, but not all AI innovators benefited equally [1] - Stock prices are influenced by financial results exceeding forecasts or management expectations surpassing investor sentiment [2] - Two companies, AMD and Adobe, made significant AI strides but saw stock declines due to delayed payoff expectations [3] Advanced Micro Devices (AMD) - AMD has been secondary to Nvidia in GPU development for AI applications but holds a strong position in AI data center chips [4] - AMD secured deals with major tech companies like Oracle, Microsoft, and Meta, indicating a strategy to counter Nvidia's dominance [5] - AMD's AI accelerators are more cost-effective for inference performance compared to Nvidia's, making them attractive for running AI applications [6] - AMD's data center revenue grew 122% YoY in Q3 2024, outperforming Nvidia's 112% growth in the same segment [7] - AMD is accelerating AI chip development, with the Instinct MI325X successor due in less than a year and the MI400 line expected in early 2026 [8] - AMD's forward P/E ratio of 24 suggests a relative bargain, with analysts expecting 54% EPS growth in 2025 [9] Adobe - Adobe enhanced its AI-powered features in 2024, notably with GenStudio, which integrates creative and marketing software for AI-driven campaigns [10] - Adobe's focus on commercial-safe generative AI provides a competitive edge, ensuring professional creatives avoid copyright or trademark issues [11] - Adobe Express, a free software, has attracted more users, with strong conversion rates to paid options due to advanced AI features [12] - Adobe implemented price increases and a credit-based system for generative AI features, driving incremental revenue [13] - Adobe's Digital Media ARR increased by $2 billion in 2024, with total revenue growing 11% YoY, while cost of revenue remained stable [14] - Adobe's 2025 outlook projects 11% ARR growth and EPS estimates of $20.20 to $20.50, below analyst expectations [15] - Adobe is well-positioned for steady revenue growth and margin expansion, with shares trading at less than 22 times the midpoint of its 2025 EPS outlook [16]

Company Performance and Valuation - Adobe's shares fell by 13.8% in December due to poorly received Q4 earnings and guidance [1] - The company has strong financial metrics: 89% gross margin, 46.6% adjusted operating margin, 36.6% FCF margin, and 13% YoY growth in digital media ARR for 2024 [3] - Adobe generated nearly $7.9 billion in FCF in 2024 and trades at 24.6 times 2024 FCF, which is not considered expensive given its scalable business model [4] Earnings and Guidance - Adobe's 2025 guidance projects 11% growth in digital media ARR, which disappointed Wall Street analysts who expected more growth [5] - Analysts anticipated higher growth due to Adobe's increasing monetization of AI solutions integrated into its products [5] AI Strategy and Market Position - Adobe's AI solution, Firefly, is currently free to encourage adoption, with premium options available for a fee [6] - Some investors are disappointed with Adobe's approach to monetizing its AI applications, seeing it as a missed growth opportunity [6] - The company faces fierce competition in the creative space, and aggressive pricing of AI solutions could lead to subscriber loss [7] - There is a debate about whether AI tools could reduce the need for creative personnel at Adobe's key customers, potentially decreasing demand for its software [7]

Technical Analysis - Warren Buffett advises to be fearful when others are greedy and greedy when others are fearful [1] - The Relative Strength Index (RSI) measures momentum on a scale of zero to 100, with a stock considered oversold if the RSI reading falls below 30 [1] Adobe (ADBE) Stock Performance - Adobe shares entered oversold territory with an RSI reading of 29.4 on Monday [3] - The stock traded as low as $438.57 per share, compared to its 52-week low of $432.47 and high of $638.25 [3] - The last trade price was $442.73 [3] - The current RSI reading of the S&P 500 ETF (SPY) is 40.9 [3] Investment Opportunity - A bullish investor could view Adobe's 29.4 RSI reading as a sign that recent heavy selling is exhausting itself, potentially indicating a buy-side entry point [3]

Investors have been focused on the technology sector for the better part of the past two years, with a particular interest in the new trends and themes happening in the world of artificial intelligence and developments in the next horizon of computing power. Within this trend, some popular stocks have performed very well through the past 12 months. However, not all rose with this higher tide. In other words, there are stocks that deserve the same merit that names like NVIDIA Co. NASDAQ: NVDA and even Palant ...

Yiannis Zourmpanos, founder of Yiazou IQ, an AI-driven stock research platform providing all-in-one stock reports. Experience: Previously worked at Deloitte and KPMG in external/internal auditing and consulting. Education: Chartered Certified Accountant, Fellow Member of ACCA Global, with BSc and MSc degrees from U.K. business schools. Investment Style: We focus on GARP/Value stocks—high-quality, reasonably priced businesses with strong moats and significant growth potential. We prioritize fundamentals and ...

One stock is on fire and at all-time highs. The other has tumbled 30% over the past year, woefully trailing the broader market. Both are table-pounding buys heading into the new year.I've seen a lot of headlines about how the stock market is expensive. That could be true, but the market consists of thousands of individual companies trading at various prices and valuations at any given time. Look hard enough, and there's always a deal somewhere.And no, you don't have to look in the market's trash heap to fin ...

We are in a unique spot in the overall economy, and thus so are sensitive, cyclical sectors such as the technology sector. As always, headwinds and tailwinds clash once again, sending investors and consumers into cautiousness andAn independent Singapore-based investor researching in trending sectors of macro markets such as Technology and Communication services.I greatly appreciate constructive feedback on how to improve my articles and theses so as to gain experience, understanding, and most importantly ad ...