10 Tech Stocks with High Upside Potential

7) Adobe Inc. (NASDAQ:ADBE)

Average Upside Potential: ~34.5%

Number of Hedge Fund Holders: 117

Adobe Inc. (NASDAQ:ADBE) operates as a technology company. Barclays reiterated an “Overweight” rating on the company’s stock with the price objective of $567 after it rolled out its public video beta via new tiered offerings, Firefly Standard and Firefly Pro. The analyst believes that this is a step in the right direction. Furthermore, Barclays opines that Firefly can now be monetized as part of a Creative Cloud subscription. To give a brief context, Firefly is a suite of generative AI-powered features for creating image content. Adobe Inc. (NASDAQ:ADBE)’s Firefly platform continues to demonstrate healthy user engagement.

Through providing AI-enhanced features as premium add-ons or via tiered pricing models, Adobe Inc. (NASDAQ:ADBE) is expected to increase average revenue per user and bring new customers looking for cutting-edge creative tools. Furthermore, the integration of Firefly into Adobe Express makes it simpler for SMBs and non-designers to develop content of improved quality. This can help Adobe Inc. (NASDAQ:ADBE) penetrate the digital content creation market, such as influencers and social media marketers.

Polen Capital, an investment management company, released its Q3 2024 investor letter. Here is what the fund said:

“We added to several existing positions in the quarter including Adobe Inc. (NASDAQ:ADBE), Workday, Shopify, MSCI, and Paycom Software. We feel Adobe is poised for re-accelerating revenue and earnings growth partially due to the monetization of its Firefly GenAI product embedded in its creative software.”