12 Best Technology Stocks to Invest In for the Long Term

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10. Adobe Inc. (NASDAQ:ADBE)

Number of Hedge Fund Holders: 123

Adobe Inc. (NASDAQ:ADBE) is a software company known for its creative, marketing, and document management solutions. Some of its widespread tools include Photoshop, Illustrator, InDesign, Acrobat, and Premiere Pro, which millions of individuals and professionals use globally.

In 2024, it launched several AI models, including Firefly, which features cutting-edge image, vector, design, and video generation tools. These AI-powered features are integrated into core applications like Photoshop, Premiere Pro, and Acrobat. AI-powered creativity contributed to a record revenue of $21.51 billion in FY2024, representing an 11% year-over-year growth.

Still, the company’s stock fell recently due to the 2025 revenue forecast of $23.3-$23.55 billion, which was below analysts’ consensus of $23.77 billion. This was fueled by investor concerns that its investments in AI-powered software applications may not yield immediate returns. The company didn’t clearly explain how it planned to monetize its new AI tools.

However, Brent Thill recently pointed out Adobe Inc.’s (NASDAQ:ADBE) growth potential based on the anticipated Firefly AI monetization. Therefore, continued investments in AI innovation position the company for continued success.

Polen Focus Growth Strategy also increased its holdings in Adobe Inc. (NASDAQ:ADBE), anticipating renewed revenue growth driven partly by monetizing its GenAI product, Firefly. Here’s what it stated regarding the company 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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