Long Adobe (ADBE); 20%+ UPSIDE
Our Software team led by Felix Wang and Andrew Freedman is hosting a presentation on Long Adobe (ADBE) on Tuesday, August 27th at 2:00pm ET to discuss the company's plans for AI integration and its potential tailwind.
CLICK HERE to get access.
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Adobe (ADBE) is already the undisputed creative leader of the world, but there is juice in the tank if it can execute its AI strategy. We're confident AI will not be a headwind for Adobe, contrary to some investors' thinking. What's great about Adobe over the years is its innate ability to integrate and cross-sell within its three clouds (Creative Cloud, Document Cloud & Experience Cloud). This concept will also apply to the hungry, creator AI video startups (e.g. OpenAI’s Sora, RunwayML and Pika) who will partner with Adobe's suite of video tools for editing and effects later this year. The greater the usage and interface with these 3rd party gen AI tools, the greater the exposure for Adobe's ecosystem. Win-win. Adobe has world-class margins (47% operating margins). Thus far, Adobe is offsetting higher AI investments with other cost efficiencies. ADBE's valuation may look high, but it deserves a high premium given its in a category by itself. We see 20%+ upside. |
We invite you to join us for this presentation.