Jim Cramer Recently Looked Into These 8 Stocks

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1. Adobe Inc. (NASDAQ:ADBE)

Number of Hedge Fund Holders: 123

When a caller asked about Adobe Inc. (NASDAQ:ADBE), Cramer replied:

“I’m worried too. You know, Shantanu Narayen is so good. The product is like a Lamborghini versus the guys that it’s up against. I don’t think I wanna sell the stock down here. It generates too much cash. I know that it seems like a tough stock to own. I can’t sell at 21 times earnings.”

Adobe Inc. (NASDAQ:ADBE) is a prominent software firm known for its wide range of products, particularly in digital media creation and document management. The stock has seen a decline of more than 30% over the past year.

Parnassus Investments stated the following regarding Adobe Inc. (NASDAQ:ADBE) in its Q3 2024 investor letter:

“Also in the Information Technology sector, we exited a position in Adobe Inc. (NASDAQ:ADBE) and initiated a new one in Synopsys. Adobe is contending with market cyclicality, rising competition and lofty AI monetization expectations that are unlikely to be met in the near term. We sold Adobe for Synopsys, which faces fewer competitive threats and has room to grow as companies adopt Synopsys software for custom semiconductor design.”

While we acknowledge the potential of Adobe Inc. (NASDAQ:ADBE) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than ADBE but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap

Disclosure: None. This article was originally published at Insider Monkey.

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