Adobe impresses with strong figures and optimistic outlooks

The media software giant Adobe presented impressive results on Thursday after the US stock market closed, successfully dispelling existing doubts in the field of artificial intelligence (AI). The Adobe stock reacted promptly, surging nearly 16 percent on Friday to around 530 US dollars at the technology exchange Nasdaq. Just the day before the announcement, the stock had closed with a moderate loss. Adobe's second quarter significantly exceeded expectations and convinced analysts as well. JPMorgan upgraded the stock from "Neutral" to "Overweight" and raised the price target to 580 dollars. Analyst Mark Murphy particularly praised the new products and price increases, which would provide tailwinds, as well as the positive effects of generative AI. Despite this, JPMorgan's price target remains relatively cautious. Goldman Sachs and Bank of America set the target at 640 dollars, with analysts Kash Rangan and Brad Sills highlighting the dynamic development in generative AI and Adobe's consistent goal achievement. Evercore ISI even sees 650 dollars with an "Outperform" rating, while Morgan Stanley is slightly more optimistic with a price target of 660 dollars. Analyst Keith Weiss described the new momentum as "encouraging" for bulls and "troubling" for bears. However, the most optimistic view comes from Jefferies, who, after a disappointing first quarter, now set a target of 700 dollars. Analyst Brent Thill emphasized the regained confidence and the tailwind that Adobe is now enjoying. Investors had previously been skeptical of Adobe's ability to fend off new AI-based competition in the media creation sector. In view of market developments, Adobe has specifically expanded its software with AI features and increased prices. After a mixed start to the year with a loss of nearly a quarter of its value until Thursday night, the Adobe stock improved with the new figures. However, it still remains significantly below the record high of almost 700 dollars from November 2021. Adobe's strong quarterly numbers temporarily supported the languishing European technology sector. Broadcom already thrilled investors with positive news on Thursday. Adobe also raised its annual target for adjusted earnings per share and expressed greater confidence about revenue. The second quarter exceeded expectations with a record revenue of 5.3 billion dollars and increased profit by over 20 percent. This growth was primarily driven by Adobe's cloud software for editing images, videos, and documents as well as online marketing.