From Nasdaq:

Despite strong capabilities in artificial intelligence, Adobe’s stock has stagnated, falling over the past month and trailing the S&P 500. Investors query if services like OpenAI’s ChatGPT will challenge Adobe’s AI leverage. Adobe reports Q1 fiscal 2024 earnings Thursday, with questions around growth, AI monetization, and revenue projections.

Adobe reported record revenue in its last earnings call, bolstered by Digital Media performance and AI integration. Q1 results and Digital Media revenue guidance will test growth sustainability and generative AI monetization. Investors seek details on product value, customer engagement, and financial impact of AI integrations, ahead of Q1 report.

Wall Street expects Adobe’s Q1 earnings at $4.38/share on $5.14 billion revenue, showing growth from the previous year. Full-year projections expect revenue and EPS to climb over 20%, emphasizing business strength. Adobe’s move into generative AI, including Firefly and Google AI partnership, boost excitement for stock growth.

Adobe’s Q4 results showcased strong performance, with beats on earnings and revenue. Record Digital Media recurring revenue and strong cash flows reinforce Adobe’s position. Q4 saw significant growth in Digital Media and Document Cloud revenue. Market anticipates continuation of strong results, especially in the realm of AI innovation.

The author’s views and opinions expressed do not reflect those of Nasdaq, Inc.



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