A-Doobie-Doobie-Doo (ADBE)

Adobe Inc. (NASDAQ:ADBE) provides software for graphic designers, web developers, video editors and photographers.

And now—like everyone else who wants to cash in from the AI mania sweeping the world—they’re branching out strongly into that realm of phony smarts.

Will it help?

After Q2 earnings were reported, the stock, indeed, jumped.

As you’ll see on the chart below, price gapped higher on news of an earnings beat and the company’s promise to lead the “new era of generative AI”.

That’s all you have to say these days…

But ADBE management was also quick to point out that the next couple of quarters might NOT produce the type of gains seen through the first two quarters of fiscal 2023.

And sure enough, investors backed off.

Before we get to all the technical nitty-gritty, however, let’s take a look at the fundamentals.

• To begin, P/E is a husky 46.26, though consensus is for that number to contract to just 27.25 a year out.
• There’s no Yield on the stock.
• Price to Book is overweight and panting at 14.95, and…
• Insiders have sold just shy of $20 million worth of stock in the last two weeks.
• Just as the stock was topping.
• Get it…?

Much of the company’s immediate fortunes are tied to U.K regulators, who will shortly decide if Adobe’s plans to buy out the design specialists at Figma for $20 billion will “hurt [industry] innovation.”

Trust-busting.

They’re scheduled to judge the issue by early August.

Now look at the chart—

That said, G-d decides.

And whether the Jews and Loyal Noahides win, is entirely in his hands.

Many happy returns,

Matt McAbby

Follow @HughLOHaynew