Adobe Systems (ADBE)

A high-quality SAAS company. Also, likes their business in AI. He has sold a lot of tech to raise his cash level to 10%. However, he has added to a few names including Adobe.

Excelled. Still some runway, his 12-month price target is $605. Latest results beat on top and bottom. Came out with Firefly package for AI. Things are humming perfectly. Buy in thirds here around $530, 500, and 475.

An original cloud king that went profitable a long time ago and is now into AI. Up 58% this year. But after reporting last Thursday, it slid 4% though has partially recovered. Some feel that Adobe's quarter dropped the ball, but he disagrees. They report a modest revenue beat with sales up 10% YOY, with the digital media business better than expected and non-GAAP EPS also beating. There was no problem in the guidance with the earnings outlook robust. Note: a week before the report Adobe announced price increases for subscribers starting Nov. 1 as it develops its Firefly AI. So, share rallied hot before the report. Shares ran up and typically people sell on the news and take profits. Also, Adobe moved its full-year forecast to next December, which spooked some weak-kneed investors. He wanted to hear an update about their Figma buy, but they couldn't yet. Buy this pullback.

Shares are coming back after an acquisition the street didn't like. Not an Apple or Microsoft, but a great tech company. Share have recovered to levels he bought at. 

They report later this week. Web traffic has been strong. Firefly should be positive. Beware that high hopes are already baked into shares.

She wants to hear about the software cycle: is demand stabilizing and the sales cycle elongating. Adobe will talk about AI.

Will talk alot about AI next week. If you want AI exposure outside Nvidia this is the real deal with a good runway ahead, despite rallying far this year already.

Really likes it. Up 40% in the last 3 months. Let it ride and don't sell. They have a tremendous AI product.

Tailwind from AI. Even without that, tremendous opportunity in where it's headed to freeform, collaborative enterprise.

It's been up and down over the past year. If the fundamentals haven't changed, you buy more. Will be a winner in generative AI. Great relationships that competitors don't have. Not cheap, but still great growth going forward.

Was upgraded today. Up past 50% in the past 4 weeks. It was a dog last year, but unbelievable now. She kept adding shares, though, seeing this as a market leader in creation and design and undervalued. AI is a driver, of course. Still has lots of upside.

This has not been a good stock--painful for two years, recently rallying. Just reported a strong report with billings up 12%. Software stocks are coming back. Generative AI is the rage, and Adobe can apply that to their range of software. Also, digital ads are picking up after a slump. The Figma acquisition could be blocked, but the market hated this deal, and ultimately she thinks it's okay. ADBE growth will continue the next 6-12 months.

It reports tomorrow. Shares are up 44% in the past month. It has underperformed its peers, because digital ads haven't attracted the market and the market didn't like an acquisition they made. But recently it's been boosted by AI which Adobe uses. Expects earnings to be up 13% and growth to continue for several quarters for 1.5 years. It leads in its field.

Their Figma deal still needs approval. Generative AI here is a second-half 2023 or 2024 story. Shares have probably have gotten ahead of themselves, but Adobe increased prices of a lot of their Cloud products while spending has been resilient. He'd wait for earnings, because shares could move sharply either way. They report tomorrow.

Upgraded today because of the AI tailwind. This will be one of the winners in AI. Glad to own it. Capital expenditure will be strong and consistent in AI.