"Adobe's (Nasdaq: ADBE) stock had a tough run last year, having dropped 21% as the market remains concerned on AI making it so much easier to do what Adobe helped designers do. Adobe has been addressing the issue by aggressively investing in its AI features and embedding AI capabilities into its offerings. Recently, it also announced the acquisition of Semrush to accelerate its AI initiatives. But the market is not fully convinced about the potential."
"Adobe's fourth quarter revenues grew 10% to $6.19 billion, ahead of the market's estimates of $6.11 billion. Adjusted EPS of $5.50 also beat analyst estimates of $5.39. During the quarter, Digital Media segment revenue grew 11% to $4.62 billion. Digital Experience segment revenue grew 8% to $1.52 billion. Adobe ended the year with revenues of $23.77 billion compared with $21.51 billion reported a year ago."
"Adobe announced plans to acquire software platform Semrush for an estimated $1.9 billion. Boston-based Semrush is a leading online visibility management SaaS platform known for its AI software that helps companies with search engine optimization, social media, and digital advertising. Semrush's tools allow its customers to see trends and derive actionable insights to improve their websites and social media pages."
Adobe's stock fell 21% last year amid concerns that AI could simplify design tasks. The company increased investment in AI features and embedded AI across its products, and acquired Semrush to accelerate AI initiatives. Fourth-quarter revenue grew 10% to $6.19 billion, and adjusted EPS was $5.50. Digital Media revenue rose 11% to $4.62 billion, and Digital Experience revenue grew 8% to $1.52 billion. Full-year revenue reached $23.77 billion and EPS rose to $16.70. The company expects Q1 revenue of $6.25–$6.30 billion and EPS of $5.85–$5.90, and full-year revenue of $25.9–$26.1 billion with EPS of $23.30–$23.50.
Read at TalkMarkets
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