Adobe’s second quarter results caused the stock to jump to US$535 on Friday, June 14. (Photo: Adobe Stock)
What to do with titles from Adobe, Cargojet and OceanaGold? Here are some analyst recommendations likely to move prices soon. Note: the author may have an opinion completely different from that expressed.
Adobe, (ADBE, US$525.31): the stock jumped 14.5% following the disclosure of 2nd quarter results
The manufacturer of creation, marketing and management tools and cloud computing and generative artificial intelligence (AI) applications revealed such good second quarter results on Friday that investors pushed the stock to US$535, an increase of 14.5% during the following trading session. Remember that it had been in free fall since February, going from US$640 to US$430 in 4 months.
Recurring digital media revenues were US$487 million, which exceeded management’s expectations by 10.7%, said Matthew Swanson, analyst at RBC Capital Markets.
Although the company did not provide specific details as to the contribution of generative AI, comments from executives were positive, indicating growth in new users, migrations to higher priced plans, and strong traction around the firm’s flagship products, notes the analyst.
Among other things, since its launch in March 2023, Adobe Firefly, a generative machine learning model used in the design field, has been used to generate nine billion images using Adobe tools.
The analyst is also pleased that management is somewhat raising its forecasts for the full year 2024. Overall, the outlook is very interesting for the second half of the year, he believes. As a result, it maintains its “outperform” rating, as well as its target price of US$600.
