6. Adobe, Inc. (NASDAQ:ADBE)
Number of Hedge Fund Holders: 123
Adobe Inc. (NASDAQ:ADBE) is a US-based global technology company that offers services, products, and solutions to fuel digital experiences and imagine, manage, optimize, and engage with content across surfaces.
Adobe Inc.’s (NASDAQ:ADBE) approach to AR is integrated into its Creative Cloud platform, which employs tools like Adobe Aero. Aero is an all-in-one authoring and viewing platform that allows users to create creative interactive AR experiences without the need for advanced coding skills. This makes the platform user-friendly and highly accessible. The company is working to improve the platform to make it better for intuitive storytelling.
The company’s digital media segment, centered around Adobe Document Cloud and Adobe Creative Cloud, also offers platforms like Adobe Firefly, Adobe Express, Photoshop, and other tools for creative professionals and other consumers. Adobe Inc.’s (NASDAQ:ADBE) vision revolves around its deep technology platforms across Creative Cloud, Document Cloud, and Experience Cloud. When integrated, these platforms provide significant value and differentiation. The company’s focus led these segments to exhibit strength in fiscal Q3 2024, undergoing an 11% year-over-year growth and attaining a revenue of $5.41 billion.
The company is boosting creativity and productivity by allowing the convergence of products like Express, Photoshop, and Acrobats. It is also bringing together content creation and production, collaboration and workflow, and campaign activation and insights across Express, Experience Cloud, and Creative Cloud.
Alger Focus Equity Fund stated the following regarding Adobe Inc. (NASDAQ:ADBE) in its Q1 2024 investor letter:
“Adobe Inc. (NASDAQ:ADBE) is a diversified software company that provides document and creative software to a wide audience, including creative professionals and enterprises. Its flagship products, such as Photoshop, Acrobat, and Creative Suite, set industry standards like PDF and Flash, supporting a broad range of Adobe applications. As such, we believe Adobe is a primary beneficiary of the digitization (i.e., converting analog information into digital format) spending theme. Recently, the company announced a generative Al (Gen Al) tool called Firefly which is a family of creative GenAl models which will be incorporated into Adobe’s product suite, which can be utilized by consumers and enterprises to potentially save time and effort by automating tasks like image and text generation. We believe Adobe has the potential to leverage Al by integrating software programs into its existing products and enhancing developer Application Programming Interfaces (APIs) to facilitate Al-driven workflows. While the company delivered strong fiscal first quarter operating results, shares detracted from performance after management lowered their fiscal second quarter guidance with Al related growth acceleration being pushed out into the second half of 2024 due to difficult year-over-year pricing comparison. particularly within their creative vertical segment.”
