Adobe Faces Investor Skepticism Despite Strong Q2 Results: Can It Reach $660 Target by 2025?
Adobe, known for tools like Photoshop, faces investor skepticism due to competition, subscription model concerns, and AI race doubts. Despite efforts with tools like Firefly, rivals are closing in. Can the company turn AI investments into profits and hit a $660 target by 2025?
Valued at $160 billion, Adobe focuses on AI with Firefly, reshaping workflows and attracting users. The recently launched Firefly app combines Adobe’s AI with OpenAI and Google models for on-the-go creativity. Despite AI ambitions, ADBE stock has fallen 35% in the past year.
Adobe exceeded Q2 earnings expectations with record revenue of $5.9 billion. Backlog of $19.7 billion shows strong demand. Digital Media revenue rose 11% to $4.4 billion, and Digital Experience revenue grew 10% to $1.5 billion. CEO and CFO highlight AI’s impact on creativity and performance.
Adobe raises full-year outlook with revenue projected at $23.5-$23.6 billion and adjusted EPS of $20.50-$20.70. Analysts maintain a “Moderate Buy” rating with a $494.73 price target, signalling 26% upside. DBS sets a bullish $660 target, suggesting a potential 75% rally for ADBE stock.
Read more at Yahoo Finance: Can Adobe Stock Hit $660 in 2025?