- I’m initiating Adobe with a buy after a 12% sell-off post-Q4 so far because I see an opportunity in the market’s not-so-optimistic outlook on the business and its AI monetization.
- Adobe didn’t guide too well for two quarters in a row compared to Mr. Market’s expectations, and I think the company is more likely to outperform expectations in 2025.
- I believe Adobe’s focus on quality and usability over immediate profits in AI will play off big time down the road.
- I share my positive sentiment on Adobe here and why I see more upside into 2025.
Investment Thesis
Adobe reported 3QFY24 earning results in September, causing a dramatic market reaction to softer-than-expected Q4 guidance, overshadowing a stellar Q3 performance. What do you know? We saw the same thing play out Wednesday after. I’m a retired Wall Street PM specializing in TMT; my educational background is a bachelor’s in Finance and Economics, and an MBA from Columbia, after which I directly began my career on Wall Street. Since kickstarting my career, I’ve spent over two decades in the market navigating the technology landscape, focusing on risk mitigation through the dot com bubble, credit default of ‘08, and, more recently, with the AI boom. In one word, what I’d like my service to revolve around is momentum. I channel years of experience at top-ranked institutional sell-side and buy-side firms and first-hand experience in retail, biotech, and technology sectors to provide data-driven insights to capture momentum. I deep dive into market trends, scrutinize company fundamentals, and assess the disruptive potential of emerging technologies and growth opportunities. My service aims to act as a tool to maneuver the market landscape so that you can know when momentum begins and, equally important, when it’ll end.
My investment strategy is simple. I specialize in tech sector investments, emphasizing risk management. I diversify within the sector, focusing on companies with solid fundamentals and innovative products; while I focus on European and U.S. stocks, I also informally cover Asia-based names that I believe have reasonable risk-reward profiles. My equity-focused approach aims to optimize returns in the tech landscape. I’ve built my wealth by navigating the technology landscape and am looking to extend my knowledge of the industry to help advance the retail guys’ investment journey. I firmly believe that technology’s exponential growth has reached a disruptive peak, with consumer demand for innovation soaring. This convergence presents a prime window of investment opportunity. The retail investor is becoming more curious and conscious of these developments, and I’d like to add to the knowledge in the field, helping guide their investments. As a contributor on Seeking Alpha, my motivation is to share my insights, research, and investment ideas with a wider audience of like-minded individuals.
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