ADBE

Think of companies like Salesforce, Adobe, and Microsoft.

Even the powerful Adobe company has dropped by 25%.

Adobe's stock fell by 73% .

You should have seen the criticism I received for buying Adobe shares and thinking they were great. I remember seeing messages from people on YouTube and Instagram saying, "Why am I listening to this guy?" "This is the guy who loves Adobe."

The shares of many such companies are still in losses, such as Apple, Oracle, Adobe, etc. So, Adobe is almost at the bottom of this list, and to me that's one of the risks, especially not directly because of generative AI.

If you need generative AI to create something, you probably weren't already a big Photoshop user. The point is, AI is enabling other companies to create competitive products that may be cheaper or more user-friendly for customers. So, we can also see now that it has fallen a bit in the pre-market.

Those four stocks are Adobe, MGM Resorts, Dick Sporting Goods, and Lyft.

One of them is Adobe. is there a growth problem with Adobe? Well, it doesn't really appear to be the case right now. Total revenue continues to grow at about a 10, 11, 12% growth rate. So that's actually accelerating over the past couple of quarters. That's really good to see.

The next company we discussed during the past year is Adobe. What can we say here? We have made a 50 % profit since the last time we discussed it , which we did at 270, where we are now. So, yes, Adobe is an option to buy, but be aware of the risks and returns associated with portfolio exposure. Then when it drops as it did, you have to add now and perhaps restore balance. And now we are here where we were just 6 months ago . So, the story now is, well, what kind of bets are there now? We ran the Excel program to find out the value of Adobe.

Yes. Well, I feel like this is one that there there's going to be a lot of agreement and disagreement in the comments about Adobe. You know, this is one of those companies that was hit by the SaaS apocalypse earlier this year.

It's Adobe, ticker symbol ADBE. Rate the strength of Adobe's business, including factors like industry and competition. 10 is invincible, a one is hopeless. Both of you have sevens, Matt.

Yeah, I mean, Adobe still has a an enormous user base. It's a sticky user base. People who have used Acrobat, you know, you know, have the Premiere tools and all that, they'll they'll still use it. Uh monthly active users surpassed 850 million. It grew 20% year-over-year, which is pretty impressive.

The next stock I'll highlight is Adobe, a business that was beaten down as a result of the SAS apocalypse earlier this year, but shares are recovering. Still, I calculated an upside of over 20% for Adobe stock as I calculated a fair value at $351 and a market price of $292.

One of the reasons why I'm optimistic about Adobe is because of the high switching cost. Even if enterprises find an attractive substitute utilizing artificial intelligence that might cost the company less after they switch, the cost of switching is so elevated to switch their entire business process away from Adobe and into a new system is costly for organizations that have been using Adobe for years or even decades.