About this episode
As SoftBank sells off its Nvidia holdings to free up capital for OpenAI, it might be time to look for something with a less eye-watering valuation.Adobe, once one of Wall Street’s most beloved SaaS players, is down nearly 50% since 2024 despite rock-solid margins and consistent revenue growth. This has made it one of the cheapest stocks in the S&P 500 on a price-to-earnings basis and has bargain-hunting investors champing at the bit.However, Mike argues that Adobe’s sell-off stems from the market’s pessimistic outlook on the brand following the rise of AI-generated imagery. While Adobe has invested heavily in its own AI-powered tools—namely Firefly—competition from OpenAI and Google may undercut Adobe’s dominance across the creative stack.Do you think Adobe can stage a comeback, or is it a falling knife?To wrap up, Emmet walks us through one of Prophet’s latest stock picks: UL Solutions Inc.Our Horizon portfolio is a boutique service led by our co-founder and lead investor, Emmet Savage. Emmet has built his career on finding life-changing investments and believes the next hundred-bagger is already within his holdings. According to 100-bagger expert Chris Mayer, “no one owns more 100-baggers than Emmet.”To claim your exclusive Horizon discount, email us at frank@mywallst.com.Become a successful investor by checking out all the content MyWallSt has to offer:? Email us: pod@mywallst.com? Learn the fundamentals of investing by downloading our free Learn app: https://bit.ly/3DXPOz7? Keep updated on stock market news by visiting our blog: https://mywallst.com/blog/? Tune in to our podcast Stock Club to stay updated on weekly news: https://mywallst.com/stock-investment-podcast/? Follow MyWallSt on social:? X: @MyWallStHQ? TikTok: @MyWallSt? Instagram: @MyWallSt?? Facebook: @MyWallSt? LinkedIn: MyWallSt00:00 Intro06:25 Adobe’s History and Evolution15:25 Current Financial Performance and Market Position24:22 The Impact of AI on Adobe and Graphic Design28:19 The Bull and Bear Case for Adobe35:19 Highlighting UL Solutions
