Insiders are Selling These 10 AI Stocks

5. Adobe Inc (NASDAQ:ADBE)

Number of Hedge Fund Investors: 107

On September 25, 2024, Adobe Inc (NASDAQ:ADBE) Chair and CEO Shantanu Narayen sold 25,000 shares at $521.58 per share, reducing his ownership by 7% to 357,967 shares. The transaction was valued at approximately $13 million. The stock is down 5% since then.

Adobe Inc (NASDAQ:ADBE) expects fourth-quarter revenue between $5.5 billion and $5.55 billion, with a midpoint of $5.525 billion, falling short of the $5.6 billion consensus estimate. Adobe Inc (NASDAQ:ADBE) also forecasts earnings per share (EPS) ranging from $4.63 to $4.68, with the midpoint slightly below the $4.67 estimate.

Adobe Inc (NASDAQ:ADBE) has become a complex case for analysts who are still gauging whether Adobe would be a net beneficiary of the AI boom or a loser. On the one hand, Adobe Inc (NASDAQ:ADBE) is under threat with tons of AI tools good enough to make beginner-level designs, posts and videos for individuals or companies with low or no marketing budget. But on the other hand, the company is launching several AI-powered tools and integrating generative AI tools in its products that could boost its revenue in the future.

Daniel Newman, CEO of Futurum Group, said in a program on CNBC that the latest earnings show the effects of a macro slowdown but Adobe Inc (NASDAQ:ADBE) could benefit if companies decide to use the company’s AI tools to cut its reliance on human workers.

Polen Global Growth Strategy stated the following regarding Adobe Inc. (NASDAQ:ADBE) in its Q2 2024 investor letter:

“With Adobe Inc. (NASDAQ:ADBE), in some ways, we see it as a microcosm of the market’s “shoot first, ask questions later” approach to categorizing AI winners and losers. In the early part of last year, Adobe came under pressure with a perception that generative AI (GenAI) would represent a material headwind to their suite of creative offerings.

In short order, the company introduced its GenAI offering, Firefly, which shifted the narrative to Adobe as a beneficiary with a real opportunity to monetize GenAI in the near term. Earlier this year, that narrative was again challenged as the company reported a slight slowdown in revenue growth. Results in the most recent quarter were robust as the company raised its full-year forecast across a number of key metrics and showcased better-than-expected results.”