2024-03-20 11:00:00 ET
Summary
- Adobe has fallen into the commodity status of AI products, facing the same pitfalls as other AI tech giants.
- The combination of common flawed generative AI with its slow rollout and execution puts it doubly behind.
- While management says it's internally on track with its AI tools and integration, guidance isn't proving it's enough.
- Underwhelming guidance and the bearish stock chart likely mark a top in the stock, forcing me to a sell rating instead of a hold.
The AI (artificial intelligence) landscape has many facets and variables, and they're each reaching the forefront as the AI world evolves. One of the higher level facets is the positioning of businesses in the AI world - is a company a producer of the hardware needed to run AI models, is it a consumer of AI to generate business returns, or is it a retailer of sorts where it produces an AI product meant to be directly consumed by end users? It's quickly becoming apparent the commodity status is encroaching on the last scenario. Unfortunately for Adobe ( ADBE ), it has fallen into this category, along with the pitfalls associated with the commodity status....
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Adobe's AI Struggle Is Common, But Unfortunate For Becoming A Standout