Market Overview - All major U.S. stock indices, including the S&P 500 and Nasdaq 100, reached new highs, driven by investor optimism regarding potential interest rate cuts despite rising inflation and jobless claims [1] - The S&P 500 closed at 6,587.47, up 0.85%, while the Nasdaq increased by 0.72% to 22,043.07, and the Dow Jones surged 1.36% to 46,108 [2] Company Highlights - **Opendoor Technologies Inc.**: Shares skyrocketed by 79.52% to close at $10.52 after announcing Kaz Nejatian as the new CEO and the return of co-founders to the board. The stock hit an intraday high of $10.70 [2] - **Super Micro Computer Inc.**: Shares rose slightly by 0.09% to close at $43.95, with a notable after-hours increase of 4.14% to $45.77 after announcing the shipment of NVIDIA Blackwell Ultra solutions [3] - **Adobe Inc.**: Experienced a modest increase of 0.11% to close at $350.55, with after-hours trading rising 2.8% to $360.31. The company reported record third-quarter revenue of $5.99 billion, beating estimates [4] - **Tesla Inc.**: Shares climbed 6.04% to close at $368.81, driven by strong demand for Model Y L orders in China, surpassing 120,000 [5] - **Rezolve AI**: Stock surged 8.64% to close at $6.79, with a new Visual Search tool launch and a significant valuation gap compared to AI sector peers [6]

Thursday, September 11, 2025After a mostly in-line inflation report ahead of today’s opening bell from the Consumer Price Index (CPI) and a surprise spike in new jobless claims spurred markets to record highs today. The Dow gained +617 points, +1.36%, to an all-time record closing high 46,108. The S&P 500 grew +55 points, +0.85%, to 6587 for the first time ever. The Nasdaq added +157 points, +0.72%, to an all-time high 22,043. Only the small-cap Russell 2000 is off its all-time high from late 2021, but stil ...

Group 1 - Adobe reported a strong quarterly revenue outlook, indicating that investments in artificial intelligence are paying off [1] - For the third fiscal quarter ending August 29, revenue grew by 11% to $5.99 billion, surpassing analyst expectations of $5.91 billion [1] - The digital media segment, which includes Adobe's flagship creative and document processing software, saw sales increase by 12% to $4.46 billion, with annual recurring revenue reaching $18.6 billion [1] Group 2 - The company expects sales for the upcoming period to be between $6.08 billion and $6.13 billion, aligning with analyst expectations [1] - Earnings per share, excluding certain items, are projected to be between $5.35 and $5.40, slightly above the average analyst estimate of $5.33 [1] - The annual recurring revenue from AI-affected products has exceeded $5 billion, with Adobe positioning itself as a leader in AI creative applications [2] Group 3 - Despite the positive outlook, Adobe's stock has declined by 21% this year, reflecting investor concerns about profitability from AI innovations [2] - There is growing competition from AI-focused rivals, leading to a generally pessimistic outlook for application software manufacturers on Wall Street [2] - Adobe faces increasing pressure from startups like Canva Inc. and native AI tools like Midjourney in the creative software space [2]

Core Insights - Adobe reported record quarterly revenue driven by artificial intelligence, with adjusted earnings per share of $5.31 and revenue of $5.99 billion, an 11% year-over-year increase, surpassing analysts' estimates [1][2] - The company has exceeded its "AI-first" revenue goals for the year, prompting an upward revision of its full-year outlook to adjusted earnings of $20.80 to $20.85 per share and revenue of $23.65 billion to $23.7 billion [2] Stock Performance - Adobe's shares have declined over 20% in 2025, closing below $351, amid concerns regarding AI progress and competition [3] - Despite the decline, Wall Street remains optimistic, with a mean price target above $461, indicating a potential premium of over 30% [3] - The stock was previously above $600 in February 2024, highlighting a significant drop from recent highs [4]

Core Insights - Adobe Systems reported quarterly earnings of $5.31 per share, exceeding the Zacks Consensus Estimate of $5.17 per share, and up from $4.65 per share a year ago, representing an earnings surprise of +2.71% [1] - The company achieved revenues of $5.99 billion for the quarter ended August 2025, surpassing the Zacks Consensus Estimate by 1.50%, and up from $5.41 billion year-over-year [2] - Adobe has consistently surpassed consensus EPS and revenue estimates over the last four quarters [2] Earnings Performance - The earnings surprise for the previous quarter was +2.02%, with actual earnings of $5.06 per share compared to an expected $4.96 [1] - The current consensus EPS estimate for the upcoming quarter is $5.32, with projected revenues of $6.07 billion, while the estimate for the current fiscal year is $20.63 on $23.56 billion in revenues [7] Stock Performance and Outlook - Adobe shares have declined approximately 21.3% since the beginning of the year, contrasting with the S&P 500's gain of 11.1% [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating expectations of underperformance in the near future [6] Industry Context - The Computer - Software industry, to which Adobe belongs, is currently ranked in the top 36% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8] - Progress Software, another company in the same industry, is expected to report quarterly earnings of $1.30 per share, reflecting a year-over-year increase of +3.2% [9]

In this piece, we will look at the stocks Jim Cramer discussed today.In his latest appearance on CNBC’s Squawk on the Street, Jim Cramer discussed the latest inflation data. Inflation, along with the labor market, factors into the Federal Reserve’s decision to manipulate interest rates. The latest data showed that prices jumped at 2.9% annually, with the 0.4% monthly gain in August being the largest since January. Cramer commented on how some things “went the wrong way”: “There are some things, shelter went ...

Financial Data and Key Metrics Changes - Adobe achieved record revenue of $5.99 billion in Q3 FY25, representing a 10% year-over-year growth [4][29] - GAAP earnings per share for the quarter was $4.18, and non-GAAP earnings per share was $5.31, reflecting 11% and 14% year-over-year growth respectively [29] - Cash flows from operations reached a record $2.20 billion for Q3 [30] - Remaining performance obligations were $20.44 billion, growing 13% year-over-year [30] Business Line Data and Key Metrics Changes - Digital Media revenue was $4.46 billion, growing 11% year-over-year, with ending ARR of $18.59 billion, up 11.7% year-over-year [11][30] - Digital Experience revenue was $1.48 billion, with subscription revenue of $1.37 billion, representing 11% year-over-year growth [22][33] - AI-influenced ARR surpassed $5 billion, with significant contributions from Firefly, Acrobat AI Assistant, and Gen Studio for Performance Marketing [10][29] Market Data and Key Metrics Changes - The adoption of Adobe Experience Platform AI Assistant reached 70% among eligible customers [8][27] - Monthly active users of Acrobat and Express grew approximately 25% year-over-year [31] - Over 14,000 organizations added Express in Q3, a 4x increase compared to the previous year [15] Company Strategy and Development Direction - Adobe's strategy focuses on integrating AI across its applications to enhance value and deliver innovative products [4][10] - The company aims to be the operating system for creative work, combining creativity and marketing solutions [7][10] - Adobe is positioned to help businesses orchestrate personalized customer experiences through its integrated platform [23][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in Adobe's ability to deliver durable and profitable growth in an AI-first world [38][39] - The company raised its FY25 revenue and EPS targets based on strong momentum and customer adoption of AI-first products [38][39] - The shift in consumer behavior towards LLMs is seen as an opportunity for Adobe to enhance brand visibility and customer engagement [22][24] Other Important Information - Adobe's effective tax rate in Q3 was 19.0% on a GAAP basis and 18.5% on a non-GAAP basis [36] - The company entered into a share repurchase agreement totaling $2.50 billion, with $8.40 billion remaining of its $25 billion authorization [37] Q&A Session Summary Question: Insights on Adobe's video manipulation technology and competitive risks from advertising platforms - Management highlighted the integration of third-party models like Nano Banana into Adobe's applications, emphasizing the unique workflow and control Adobe provides [44][45] - Concerns about competition from advertising platforms were addressed, noting that larger enterprises prefer Adobe for multi-channel campaign management [48][49] Question: Drivers of success in AI-first products - Management noted strong adoption across various AI-first products, including Firefly and Acrobat AI Assistant, contributing to exceeding the $250 million ARR target [52][54] Question: Mix of AI credit usage and internal impact of LLM Optimizer - The majority of AI generation continues to come from Firefly, with increasing usage of third-party models for ideation [58][59] - The LLM Optimizer was tested internally, leading to increased visibility for Adobe's products through LLMs [60][61] Question: Pricing strategy and performance expectations - Management reported strong adoption of Creative Cloud Pro and Firefly, indicating healthy migration and overall strength across the creative business [64][66] Question: Future growth prospects and adaptation to LLMs - Management expressed confidence in the growth of digital media ARR, driven by strong adoption of AI-first products and integrated solutions [68][70]

Financial Data and Key Metrics Changes - Adobe achieved record revenue of $5.99 billion in Q3 FY25, representing a 10% year-over-year growth [5][30] - GAAP earnings per share for the quarter was $4.18, and non-GAAP earnings per share was $5.31, reflecting 14% year-over-year growth [5][30] - AI-influenced ARR surpassed $5 billion, up from over $3.5 billion exiting FY24 [11][30] - Cash flows from operations reached a record $2.20 billion for Q3 [31][37] - Remaining performance obligations were $20.44 billion, growing 13% year-over-year [31][37] Business Line Data and Key Metrics Changes - Digital Media revenue was $4.46 billion, growing 11% year-over-year, with ending ARR of $18.59 billion, up 11.7% year-over-year [12][31] - Digital Experience revenue was $1.48 billion, with subscription revenue of $1.37 billion, representing 11% year-over-year growth [23][34] - Acrobat and Express products saw combined monthly active users grow approximately 25% year-over-year [11][32] - Workfront, Frame, AEM Assets, Firefly Services, and Gen Studio for Performance Marketing products exceeded $1 billion in ARR, growing over 25% year-over-year [9][37] Market Data and Key Metrics Changes - Strong adoption of Adobe Experience Platform AI Assistant, with 70% of eligible customers leveraging this functionality [9][28] - LLM traffic grew 4,700% year-over-year in July 2025, indicating a significant shift in consumer behavior [23][24] - Digital Experience subscription revenue grew over 40% year-over-year [28] Company Strategy and Development Direction - Adobe's strategy focuses on infusing AI across its applications to enhance value and deliver innovative products [5][10] - The company aims to provide an integrated customer experience platform that combines creativity and marketing [10][25] - Adobe is positioned to capitalize on the growing demand for hyper-personalized experiences and marketing automation [10][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in Adobe's ability to deliver durable and profitable growth, driven by product leadership and customer-centric innovation [39][40] - The company raised its FY25 revenue and EPS targets based on strong momentum and execution [39][40] - Management highlighted the importance of adapting to changes in consumer behavior driven by AI and LLMs [24][79] Other Important Information - Adobe entered into a share repurchase agreement totaling $2.50 billion, with $8.40 billion remaining of its $25 billion authorization [37][38] - The company plans to showcase innovations at Adobe Max, focusing on productivity features and AI capabilities [22][42] Q&A Session Summary Question: Insights on the Adobe Magic demo and its value proposition - Management highlighted the integration of third-party models like Nano Banana into Adobe's applications, emphasizing the unique workflow and control Adobe provides [44][46][49] Question: Concerns about competition from advertising platforms - Management noted that larger enterprises prefer Adobe for multi-channel campaign management and attribution, indicating a strong competitive position [45][51] Question: Drivers of AI-first product growth - Management indicated that strong adoption across various AI-first products, including Firefly and Acrobat AI Assistant, contributed to exceeding the $250 million ARR target [54][56] Question: Mix of AI credit usage between Firefly and third-party models - Management confirmed that the majority of generation continues to be from Firefly, with a growing interest in third-party models for ideation and editing [59][62] Question: Impact of LLM Optimizer on internal operations - Management shared that LLM Optimizer was tested internally, leading to increased visibility for Acrobat through LLMs [63][64] Question: Pricing strategy and performance - Management reported strong adoption of Creative Cloud Pro and Firefly Services, indicating healthy migration and overall strength across the creative business [68][70] Question: Future growth confidence and AI adoption - Management expressed confidence in the growth of digital media ARR, driven by strong adoption of AI-first products and integrated solutions [72][74]

Financial Data and Key Metrics Changes - Adobe achieved record revenue of $5.99 billion in Q3 FY25, representing a 10% year-over-year growth [4] - GAAP earnings per share for the quarter was $4.18, and non-GAAP earnings per share was $5.31, reflecting 14% year-over-year growth [4][29] - Cash flows from operations reached a record $2.20 billion for Q3 [30] - Remaining performance obligations were $20.44 billion, growing 13% year-over-year [30] Business Line Data and Key Metrics Changes - Digital Media revenue was $4.46 billion, growing 11% year-over-year, with ending ARR of $18.59 billion, up 11.7% year-over-year [11][30] - Digital Experience revenue reached $1.48 billion, with subscription revenue of $1.37 billion, representing 11% year-over-year growth [22][33] - AI-influenced ARR surpassed $5 billion, with significant contributions from Firefly, Acrobat AI Assistant, and Gen Studio for Performance Marketing [10][30] Market Data and Key Metrics Changes - The adoption of Adobe Experience Platform AI Assistant saw 70% of eligible customers leveraging this functionality [8] - The education sector showed robust performance, driven by access to Express, Acrobat AI Assistant, and Firefly for students [31] - Strong demand for Adobe Experience Platform and native apps, with Q3 subscription revenue growing over 40% year-over-year [27] Company Strategy and Development Direction - Adobe's strategy focuses on integrating AI across its applications to enhance value and deliver innovative products [4][10] - The company aims to provide a comprehensive solution for digital marketing and customer experience, leveraging AI to transform consumer engagement [22][24] - Adobe is positioned to help businesses orchestrate personalized customer experiences through its integrated platform [23][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in Adobe's ability to grow digital media ARR at double digits for the foreseeable future [70] - The company raised its FY25 revenue and EPS targets based on strong execution and customer adoption of AI-first products [38] - Management highlighted the importance of maintaining direct consumer relationships in the evolving digital landscape [75] Other Important Information - Adobe's effective tax rate in Q3 was 19.0% on a GAAP basis and 18.5% on a non-GAAP basis [36] - The company entered into a share repurchase agreement totaling $2.50 billion, with $8.40 billion remaining of its $25 billion authorization [37] Q&A Session Summary Question: Insights on the video demo and Adobe's value proposition - Management highlighted the integration of third-party models like Nano Banana into Adobe's infrastructure, emphasizing the unique workflow capabilities [45][46] Question: Concerns about competition from advertising platforms - Management noted that larger enterprises prefer Adobe for multi-channel campaign management, which mitigates risks from single-channel marketers [50] Question: Drivers of AI-first product growth - Management indicated that strong adoption across various AI-first products contributed to exceeding the $250 million ARR target [54][55] Question: Mix of AI credit usage between Firefly and third-party models - Management confirmed that Firefly remains the primary model used, with increasing integration of third-party models for ideation and editing [60] Question: Impact of LLM Optimizer on internal operations - Management shared that LLM Optimizer was tested internally, enhancing visibility and traffic through improved content accessibility [61][62] Question: Pricing strategy and performance - Management reported strong adoption of Creative Cloud Pro and Firefly services, contributing to overall growth [66] Question: Future growth confidence and market positioning - Management expressed confidence in the creative opportunity and the differentiated solutions offered by Adobe [70][71]

Financial Data and Key Metrics Changes - Adobe achieved record revenue of $5.99 billion in Q3 FY25, representing a 10% year-over-year growth [4] - GAAP earnings per share for the quarter was $4.18, and non-GAAP earnings per share was $5.31, reflecting 14% year-over-year growth [4][28] - Cash flows from operations reached a record $2.20 billion for Q3 [29] - Remaining performance obligations were $20.44 billion, growing 13% year-over-year [29] Business Line Data and Key Metrics Changes - Digital Media revenue was $4.46 billion, growing 11% year-over-year, with ending ARR of $18.59 billion, up 11.7% year-over-year [11][29] - Digital Experience revenue was $1.48 billion, with subscription revenue of $1.37 billion, representing 11% year-over-year growth [22][29] - AI-influenced ARR surpassed $5 billion, up from over $3.5 billion exiting FY24 [10] Market Data and Key Metrics Changes - Monthly active users of Acrobat and Express grew approximately 25% year-over-year [30] - Over 14,000 organizations added Express in Q3, a 4x increase compared to the previous year [15] - Digital Experience Platform subscription revenue grew over 40% year-over-year [26] Company Strategy and Development Direction - Adobe's strategy focuses on integrating AI across its applications to enhance value and deliver innovative products [4][10] - The company aims to be the operating system for creative work, combining creativity and marketing solutions [6] - Adobe is expanding its offerings with new products like Acrobat Studio and Firefly, targeting both business professionals and consumers [10][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in Adobe's ability to grow digital media ARR at least double digits for the foreseeable future [68] - The company raised its FY25 revenue and EPS targets based on strong momentum and customer adoption of AI-first products [35][36] - Management highlighted the importance of hyper-personalization and immersive experiences in the evolving marketing landscape [23] Other Important Information - Adobe's effective tax rate in Q3 was 19.0% on a GAAP basis and 18.5% on a non-GAAP basis [34] - The company entered into a share repurchase agreement totaling $2.50 billion, with $8.40 billion remaining of its $25 billion authorization [35] Q&A Session Summary Question: Insights on the video demo and Adobe's value proposition - Management emphasized the differentiation in choice and integration of third-party models within Adobe applications, enhancing user workflows [43][44] Question: Concerns about competition from advertising platforms - Management noted that larger companies prefer Adobe for multi-channel campaign management, which mitigates risks from single-channel marketers [47] Question: Strength in AI-first products - Management highlighted strong adoption across various AI-first products, including Firefly and Acrobat AI Assistant, contributing to exceeding the $250 million ARR target [50][51] Question: Mix of AI credit usage between Firefly and third-party models - Management confirmed that the majority of generation continues to be from Firefly, with a nice uptick in third-party model usage for ideation and editing [55][57] Question: Pricing and performance of the Performance X product - Management reported strong adoption of Creative Cloud Pro and Firefly Services, indicating healthy migration and overall strength across the creative business [64][65] Question: Relationship between seats and consumption in Creative Cloud - Management acknowledged the shift towards consumption models but emphasized the continued strength in seat-based revenue, particularly with AI integration [78]