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Adobe (ADBE) reports its fiscal first quarter results after the market close on Wednesday. Catalysts Anchor Madison Mills and Yahoo Finance Executive Editor Brian Sozzi lay out what investors should be watching for.
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Adobe shares taken higher ahead of results coming out after the close today. The stock suffering after the company's last two reports. Among AI monetization efforts seeming further away than investors hoped for. The company can see shares up a bit heading into that print. Adobe holding a digital, digital summit next week where they are expected to showcase their AI development. So I think it'll be really interesting to see if there is any weakness in this print. Do they try to stay away from it being an AI depression narrative and make it about the economic uncertainty that we're seeing more broadly. What are they going to blame it on if they do see it?
Well, I think this Adobe earnings report may be a little bit of a snoozer in terms of what information is going to come from the company. Historically speaking, anytime, at least based on my long veteran experience of doing this medicine, when a company has an earnings day and then a week later they want to hold a summit or an analyst day, usually on earnings day, that news is not so great. And that would just continue, I would say, a year plus drum beat of just not good news for Adobe. Missed earnings expectations, sales estimates are coming down. And the vibe on the street medicine is this, what in the world does Adobe stand for an AI? What are their biggest bets? And that company has not done a good job the past year articulating what it stands for an AI. Why is it an AI stock? How is it going to better compete with an upstart like Canva? Until it answers those questions, maybe they'll put it out there in their digital summit analyst day thing, but until they do that, it's going to be hard to warm up to a stock like Adobe.
And not only Canva, but all of these AI powered editing tools. When I talk to content creators, they're using CapCut. They're not paying $40 a month for Adobe products. And I think that's another competitive force.
I still can't figure out how to use CapCut. Is it just because I'm old? I mean, you can tell me. It's fine. I don't love, you know, it's the fat fingers for me. Make it a little bit difficult. You know what I mean? It's a little bit hard to edit.
confusing. I just want to edit a video and get it out there on the internet.