12 Best Virtual Reality Stocks to Buy According to Analysts

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5. Adobe, Inc. (NASDAQ:ADBE)

Analyst Upside: 32.31%

Number of Hedge Fund Holders: 117

Adobe Inc. (NASDAQ:ADBE) is a US-based global technology company that offers services, products, and solutions to fuel digital and immersive experiences and imagine, manage, optimize, and engage with content across surfaces. It is a significant player in the VR industry. Its Adobe Substance 3D Modeler is a VR 3D modeling and sculpting application that allows users to create across VR and desktop. The modeler allows users to undertake a VR experience by letting them work in 3D as intuitively as working with clay in real life. It thus helps professionals and users focus on the creative process in a virtual reality instead of the technical limitations associated with real life modeling.

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. (NASDAQ:ADBE) is strengthening its product portfolio by employing AI to empower filmmakers at all levels. On January 28, the company unveiled Adobe Premiere Pro, After Effects, and Frame.io, designed to streamline workflows and target common challenges for frequent software users. The company also had a solid fiscal year 2024, reporting $21.51 billion in revenue, $8.06 billion in cash flows from operations, and $19.96 billion in RPO. It also reported revenue of $5.61 billion in fiscal Q4 2024, representing 11% year-over-year growth. Its strategy, AI innovation, and massive cross-cloud opportunity position it well for 2025 and beyond.

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.”

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