ADBE - Adobe Inc.

Mentioned alongside Amazon and Salesforce as a tech company with enough tailwinds and reinvestment opportunities (AI) that using its cash to invest internally is worthwhile rather than holding cash or buying bonds.

OpenAI blocked Adobe from advertising on ChatGPT, signalling OpenAI is building into Adobe's visual/image space directly — a negative competitive signal.

Reported after hours and is moving to the upside. Could help lift software broadly (IGV) if strength continues.

Adobe reports earnings after hours tomorrow; big earnings catalyst for software sector.

Down ~21% from highs despite AI revenue tripling past $500 million. Could emerge as the trusted professional layer for AI creativity rather than being disrupted.

Adobe is trading at only ~11x forward earnings after rebounding from ~$200 to ~$300. He still owns it, thinks it is 'too cheap to ignore', but has no plans to buy more or sell before the September 10 earnings. He plans to hold for two years.

Called 'smoked' — one of the cheapest stocks in the market for a reason: no moat. 'Everything Adobe does you can probably do with AI,' and within a year or two AI will replicate the Premier suite. Steve agrees 100% on the moat erosion.

Adobe is a contrarian pick; stock is down massively on AI fears but the business is healthy: ~$27B ARR, Q3 revenue $6.6B up 13%, management raised guidance. AI increases content creation, creating more finishing work for Adobe. Free user base grew to 90M, building a funnel.

Brad sees AI as a pressing risk/reward for Adobe: content creation is low-hanging fruit for AI, but Adobe's scale and data may let it out-innovate disruptors.

Host has a position in Adobe that has been performing well; sees it as a high-quality SaaS name worth holding.