SAP - Adobe: Q2 Showed The Monetization Power Of Company's AI Tools

2024-06-20 11:35:46 ET

Summary

• ADBE's second-quarter performance exceeded expectations with impressive revenue and EPS growth, leading to raised guidance for FY24.
• The company's AI tools, including Firefly and Adobe Express, are driving growth in Document Cloud and setting the foundation for AI-driven marketing.
• Despite regulatory challenges and competition, ADBE's strong performance and demand for AI tools support a bullish outlook, with a price target upgrade.

Investment Thesis

The last time I wrote about Adobe Inc . ( ADBE ), I talked about the company’s first quarter results and argued that the company’s AI roadmap was on track, and as such, investors should be patient when it comes to its monetization. ...

For further details see: