Adobe Systems (ADBE)

A tough call. Many have switched from Adobe to the cheaper Figma. Let the Figma deal come and see what happens; you could get Adobe cheaper.

Still stands out, but the fear is that it won't in the world of AI. And that's why it looks particularly interesting. Good earnings, upped guidance, yet stock fell. Valuation has collapsed to 17x PE. Still likely to grow double-digit EPS this year, and consensus is still 14-15% EPS growth over the next 3 years. 

There is more competition, but it's spending 18% of sales on R&D, so something compelling will turn up. No dividend.

Now cheap at $380. This reminds him of IBM or Oracle who hadn't grabbed the current trend, but Adobe has just released Firefly. He sees more upside than downside.

Is at risk of single-digit revenue growth in 2025, and the last time that happened was 2014. He sold. 

She got sick of holding this, because they have trouble with Photoshop--now people can use the tools found in PS elsewhere. She sold before the quarter. Also with Meta, clients can create their own ads using Meta's tools. Adobe hasn't moved fast enough to develop such tools.

He bought more. They beat top and bottom lines, and raised guidance. He's a value investor. Sure, the share price has been terrible, but their earnings estimates are starting to rise and they're buying back share to reduce the share count 5% in the past year. They are meeting the competitive threat through their beats and guidance. They outperform consistently. Eventually, the share price will rise.

Shares are down today after reporting. The street is challenging their ability to monetize AI. They continue to deliver every time they report, but the stock does not perform well. But he will continue to be patient, because this is a stock to own.

It reports Thursday. It could break its downtrend. He wishes the competition wasn't so fierce, and it's not letting up. An amazing company helping small companies. Is worth buying at 20x earnings. A good report, and this flies.

Still growing topline and bottom line at double digits. Spewing lots of free cash, buying back stock, great balance sheet. Worry is about how will AI affect its business? No evidence yet that it's impacting any of the company's results. Market's not respecting the fundamentals at the moment, maybe rightly so.

Thought it was well positioned to monetize AI and deliver to end user. Didn't execute to the extent that analysts thought it would. Increased competition in the space. Struggling to maintain market share. Still owns, disappointing.

She just sold it. It's been undervalued and dominates its space. But trends are slowing and she doesn't know how long the company will prove itself in this space in regards to AI.

Trading ~17x forward PE with 14% growth rate, so not a bad valuation compared to other tech names. Tepid guidance brought stock down. Below 200-week MA, which is moving lower as well, not great signs. 

Not the type of company that would suffer from anti-American sentiment. At first, AI enhanced its product abilities; but then this morphed into perhaps products would become obsolete. No reason to get in.

The stock has been an absolute disaster due to one reason: Adobe products face serious competition. They beat quarter after quarter (expectations are not lowered ahead of time, either). The competition is not as bad as people expect. Adobe is ridiculously cheap and unfairly sold given its growth rate, EBITDA and free cash flow. Hold and wait it out as they buy back shares.

He will continue to hold -it is at an attractive valuation and growing its top line by 10% and trades at 20X earnings. It is the industry Goliath in creative space. Analysts wonder about upstarts taking away business and are questioning why they aren't monetizing AI more substantially. However it isn't communicating this and can't separate it out in the features that are included in its products for which it could charge higher prices.