Friday, June 14th, 2024Most of the smoke has cleared for this week. Not only vital Consumer Price Index (CPI) and Producer Price Index (PPI) data and a new Federal Open Market Committee (FOMC) meeting have come and gone, but so have post-earnings season quarterly reports from companies like Broadcom (AVGO) and Adobe (ADBE) . Results have come in about as well as could be reasonably expected, yet we’ve continued the market bifurcation: up on the Nasdaq and (by extension) the S&P 500, down on the Dow and smal ...

The price correction in Adobe NASDAQ: ADBE stock experienced over the past two quarters was not unwarranted. The company’s AI prospects aside, the results were solid but failed to show the boost seen in other prominent AI players, including NVIDIA NASDAQ: NVDA, Micron NASDAQ: MU, Microsoft NASDAQ: MSFT, Meta NASDAQ: META, Alphabet NASDAQ: GOOGL and Oracle NYSE: ORCL. However, the company’s quality and value to investors never wavered, leading to a buying opportunity still in play. Adobe TodayADBEAdobe$523.9 ...

David Tran I upgraded Adobe Inc. (NASDAQ:ADBE) to "Strong Buy" in my previous article published in March 2024. I argued that AI is not an enemy, but an ally. The company released its Q2 result on June 13th after the bell, delivering 11% revenue growth and 15% EPS growth. Adobe has been investing in AI training for its Firefly platform, and applying it to its flagship solutions including Photoshop, Illustrator, Lightroom and Premiere. I continue to trust Adobe is well positioned to capture the growth in ...

Adobe Inc (NASDAQ:ADBE) reported fiscal second-quarter earnings and revenue that beat expectations. The company also raised its annual revenue forecast thanks to strong demand for its artificial intelligence (AI) editing tools. At last glance, ADBE is up 14.7% to trade at $525.96.In response, J.P. Morgan Securities upgraded the security to "overweight" from "neutral," and raised its price objective to $580 and $570. Six other analysts lifted their price targets as well. Coming into today, 23 of 32 firms in ...

ToplineAdobe shares soared Friday morning after the company beat earnings expectations, a sign the company’s approach to artificial intelligence could be working for the creative software giant amid fears generative AI could cause widespread disruption for many industries.Adobe beat earnings expectations, partly due to the success of its AI products. SOPA Images/LightRocket via Getty Images Key FactsShares for Adobe (ADBE) rose roughly 14% to $523 in premarket trading Friday morning. The jump comes after t ...

JHVEPhoto Adobe Inc. (NASDAQ:ADBE) reported Q2 earnings today, which were met with euphoria after hours by the market. The enterprise software sector has broadly taken a beating in recent weeks with popular names like Salesforce (CRM) and UiPath (PATH) getting hammered after weak earnings. This dragged Adobe down while the company was navigating a recent controversy over its terms and conditions, a pending FTC investigation into cancellation policies, and general fear about the extent of AI's impact on its ...

Adobe proved the doubters wrong.In this video, I will go over Adobe's (ADBE -0.25%) second-quarter earnings report and explain why the stock is up 15%.*Stock prices used were from the trading day of June 13, 2024. The video was published on June 13, 2024. ...

JHVEPhoto/iStock Editorial via Getty Images Investment Thesis Adobe (NASDAQ:ADBE) stock jumps 15% premarket as investors cheer its outlook. The bull case here is that Adobe's profit margins continue to bedazzle investors. But once the dust has settled, a lot of the bearish aspects will resurface. Namely, will AI disrupt many of Adobe's products? Or, will it be the case, that management can continue to embrace AI to drive more demand for its services? For my part, I make the case that paying 26x next year's ...

Key TakeawaysAdobe shares surged nearly 15% in extended trading on Thursday after the media software maker reported earnings that topped analysts' estimates and lifted its full-year guidance amid robust demand for its suit of generative AI digital media products.Monitor the $535 level on Adobe's chart, an area where the price may encounter selling pressure near the closely watched 50% Fibonacci retracement level that sits in close proximity to the downward sloping 200-day moving average and a period of Febr ...

Financial Data and Key Metrics - Q2 revenue reached $5 31 billion, representing 11% YoY growth [7] - GAAP EPS was $3 49, and non-GAAP EPS was $4 48, up 15% YoY [7] - Digital Media revenue grew 12% YoY to $3 91 billion, with net new ARR of $487 million [13] - Document Cloud revenue grew 19% YoY to $782 million, with net new ARR of $165 million, a Q2 record [15] - Creative Cloud revenue grew 11% YoY to $3 13 billion, with net new ARR of $322 million [21] - Experience Cloud revenue grew 9% YoY to $1 33 billion, with subscription revenue up 13% YoY to $1 2 billion [23] - Cash flow from operations was $1 94 billion, and RPO reached $17 86 billion, up 17% YoY [31] Business Line Performance Digital Media - Document Cloud saw strong growth driven by Acrobat AI Assistant, with MAU for Acrobat Web growing over 60% YoY [16] - Creative Cloud benefited from AI-driven features like Generative Fill in Photoshop and Text to Vector in Illustrator, driving user engagement [18] - Adobe Express saw MAU double QoQ, with strong adoption in mobile and web platforms [19] - Firefly Services and Custom Models were launched, enabling enterprises to create asset variations at scale [20] Digital Experience - Adobe Experience Platform (AEP) is on track to become a billion-dollar business, with subscription revenue growing 60% YoY [26] - AEP AI Assistant is enhancing productivity for marketers, with customers like General Motors and Marriott International leveraging the platform [24][25] - GenStudio is addressing enterprise content supply chain needs, with innovations like AEM Generate Variations and Workfront Planning [27] Market Performance - Strong growth in SMB and enterprise segments, with key wins including AstraZeneca, Chevron, and Wells Fargo in Document Cloud [16] - Creative Cloud saw strength in emerging markets and SMB adoption, with enterprise customers migrating to higher-value plans [33] - Experience Cloud secured key customer wins, including Amazon, Mercedes-Benz, and Novo Nordisk [28] Strategic Direction and Industry Competition - Adobe is integrating AI across its product portfolio, with Firefly generating over 9 billion images since its launch [9] - The company is expanding partnerships with third-party models to offer multi-modal LLMs, enhancing customer choice [12] - Adobe is focusing on AI-first applications like Adobe Express, which is driving new user acquisition and retention [19][20] Management Commentary on Operating Environment and Future Outlook - Management highlighted the strong demand for AI-driven products, with Firefly and Acrobat AI Assistant driving adoption and monetization [12][14] - The company raised its annual targets for Digital Media net new ARR, Digital Experience subscription revenue, and EPS, reflecting confidence in its product roadmap [12][39] - Adobe expects continued growth in Q3, with revenue targets of $5 33 billion to $5 38 billion and Digital Media net new ARR of $460 million [38] Other Key Information - Adobe repurchased $2 5 billion in shares, with $22 7 billion remaining under its $25 billion authorization [37] - The company was recognized among Fortune's 100 Best Companies to Work For and Glassdoor's Best-led Companies [41] Q&A Session Summary Question: Drivers of Creative Cloud net new ARR - Growth is driven by new user acquisition, upsell to higher-value plans, and AI-driven features like Firefly [44][45] Question: Impact of generative AI on demand - Generative AI is driving adoption across Creative Cloud and Document Cloud, with early success in monetizing AI technologies [47][48] Question: Macroeconomic environment and demand trends - Adobe's diverse product portfolio and execution focus mitigate macroeconomic risks, with strong performance across SMB and enterprise segments [53] Question: Firefly monetization and engagement - Firefly is driving higher retention and engagement, with users migrating to higher-priced plans that include Firefly entitlements [56][58] Question: Adobe Express metrics and accomplishments - Express MAU doubled QoQ, with cumulative exports growing over 80% YoY, driven by AI integration and mobile adoption [61][62] Question: Creative Cloud unit growth outlook - Strong unit growth is expected to continue, driven by AI-driven product innovation and onboarding improvements [66] Question: AEP growth drivers and AI Assistant impact - AEP AI Assistant is simplifying use case deployment, driving consumption growth, and accelerating the journey to $1 billion in revenue [83][84] Question: Long-term impact of generative AI on creative and marketing industries - Generative AI is expected to expand the market by making creative tools more accessible and enabling personalized marketing at scale [89][91] Question: Customer feedback on Firefly Services and GenStudio - Early feedback is positive, with customers using Firefly Services for ideation and content variation, and GenStudio for automating content production [98][99]