Adobe is a rock solid AI stock in 2023, but we would wait for a pullback into the 460-470 region before committing additional capital to the name
Adobe $Adobe (ADBE.US)$ has increased its full-year revenue and profit outlooks, buoyed by the expected demand for its software enhanced with generative AI features. The company now projects annual sales of about $19.3 billion and an adjusted profit of up to $15.75 per share, surpassing average analysts' estimates. Adobe's strategy includes embedding generative AI features across its product line, potentially bolstering demand for its software, including Photoshop.
Despite the ongoing regulatory hurdles surrounding its proposed $20 billion acquisition of design startup Figma, Adobe maintains a positive outlook. Fiscal Q2 sales rose 10% to $4.82 billion, beating projections, while profit, excluding certain items, was $3.91 per share, higher than the average estimate of $3.79. The company's Digital Media segment revenue increased 10% to $3.51 billion, exceeding estimates, while sales in its Digital Experience division rose 12% to $1.22 billion, in line with forecasts.
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