12 Best QQQ Stocks to Invest in Now

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10. Adobe Inc. (NASDAQ:ADBE)

Number of Hedge Fund Holders: 117

Adobe Inc. (NASDAQ:ADBE) is a technology company that provides digital media and marketing solutions. Through its Creative Cloud, Document Cloud, and Digital Experience segments, it helps individuals and businesses create, publish, and manage digital content and customer experiences across various platforms.

The company is advancing in AI with tools like Adobe Firefly, which is a GenAI suite for image creation. Morgan Stanley’s Keith Weiss maintained a Buy rating on the company with a $660 price target towards the end of February. This sentiment was supported by the company’s Firefly Video model’s tiered pricing as a strategic move. This pricing aims to boost user adoption and monetization.

The Firefly suite has seen significant adoption with over 16 billion generations across the company’s tools as of Q4 2024. The Firefly Video model, which is integrated into Premiere Pro, has driven a 70% increase in Premiere Pro beta users. Adobe Inc. (NASDAQ:ADBE) is introducing a new and higher-priced Firefly offering that includes the video models. It aims to monetize new users, provide additional value to existing customers, and increase ARPU. This tiered pricing strategy is designed to expand user adoption and improve monetization opportunities.

Polen Focus Growth Strategy stated the following regarding Adobe Inc. (NASDAQ:ADBE) in its Q3 2024 investor letter:

“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.”

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