Adobe's AI Revenue Surge, Narayen's Departure

0:00Adobe just dropped earnings showing their AI push is finally printing real cash, with $125 million in annual recurring, revenue from tools like Creative Cloud and Express. That's a big step after months of investor doubt on whether Gin AI would boost growth or just burn money. The stocks down 37% this year, trading around 320 bucks a share with a Ford price to earnings of 10 times. Core business held strong though. Some media up 12% with 432 million in net new annual recurring revenue, management highlighted solid retention and upsells, easing fears from rivals like Canva. They even raised full year guidance to 25.9 to 26.1 billion in revenue and non-GAP earnings per share of, $23.30 to $23.50. Analysts aren't fully buying the hype yet. Darkleys downgraded to equal weight, slashing their target to $275 over weaker net ads and pricing pressure from free AI.

1:01Features, firms like City, Jeffries and Goldman flag competition in CEO uncertainty, with Goldman's trade of selling on high end user risks. Meanwhile, longtime CEO Shantanu Narayan announced he's stepping down after 18 years, timing it for the AI era shift. He called it a natural handoff, but investors wonder if new blood can balance AI bets with margins. Watch how fast that AI revenue scales if express flips free users to paid and whether creative cloud stays bulletproof. If it all clicks, Adobe could spark a comeback, otherwise the weight drags on. At RapStorm News today, brought to you with AI.