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June 1, 2025

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In Stocks

Adobe stock price is cheap: is it a good buy?

3 Mins Read

Adobe stock price has underperformed the broader market and other companies in the software-as-a-service (SaaS) industry like Microsoft, ServiceNow, and Salesforce. It has dropped by over 35% from its highest point last year as concerns about competition and impact of artificial intelligence (AI) remain. 

Competition, AI, and growth concerns

The Adobe share price has come under pressure in the past few months as the company faces a mountain of challenges.

Its biggest challenge is competition from companies like Canva and Figma, which have become multibillion-dollar firms. Canva has a valuation of almost $50 billion, while the recent fundraising placed Figma’s valuation at over $12 billion.

These firms have become big names because of their investments in easy-to-use solutions, emphasis on collaboration, and artificial intelligence services. 

Adobe stock price has also dropped as AI tools disrupt some of its solutions. While the company has invested in AI tools, investors are yet to see the impact in terms of revenue and profitability. 

Analysts and investors are concerned about the impact of AI on some of its services like Photoshop and Dreamweaver. Dreamweaver, which simplifies the website design process, is being disrupted by AI tools like ChatGPT and Grok that can build a website from scratch after a few prompts.

Adobe stock price has also underperformed because of an FTC lawsuit that alleges the company hid fees and prevented customers from cancelling its software easily. 

Further, there are concerns about Adobe’s growth. Its last annual revenue rose to $21.5 billion, up from $19.4 billion.

The most recent numbers showed that Adobe’s revenue rose by 10% in the first quarter to $5.71 billion. Its operating income rose to $2.16 billion, while its cash flow from operations rose to $2.48 billion.

Most of Adobe’s revenue came from the digital media segment, which made $4.23 billion. This business includes the Creative Cloud and Document Cloud businesses, including services like InDesign, Illustrator, and Photoshop. 

The digital experience business includes services like Marketo, Adobe Target, , Journey Optimizier, and Adobe Campaign. 

Read more: Adobe stock price triangle pattern points to big moves ahead

ADBE earnings and valuation

The next key catalyst for the Adobe stock price will be its earnings, which will come out in June. 

Wall Street analysts anticipate that the revenue rose by 9.2% in the first quarter to $5.8 billion. The most optimistic analyst sees its revenue coming in at almost $6 billion.

Analysts also expect that its second-quarter revenue will be $5.8 billion, a 8.65% increase. The annual revenue is expected to be $23.46 billion and $25.72 billion, respectively. 

Analysts also believe that Adobe stock price is cheap. The average stock forecast is $488, up from the current $380. 

It has a net income and a free cash flow margin of 30% and 37%, and an annual growth rate of about 10%. This gives it a rule of 40 metric in the range of 40% and 47%, making it fairly valued. 

Adobe stock price analysis

ADBE chart | Source: TradingView

The daily chart shows that the ADBE share price bottomed at $332.98 in April and then bounced back to over $400 today. It has moved above the upper side of the descending channel.

The stock has formed a bullish flag pattern and moved above the 50-day and 100-day moving averages. The most likely scenario is where the Adobe share price rebounds and hits the psychological point at $500, up by 20% from the current level.

The post Adobe stock price is cheap: is it a good buy? appeared first on Invezz

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In World news

NVIDIA Rallies After Strong Q1, AI Demand Outshines China Export Hit

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NVIDIA (NASDAQ:NVDA) shares rose over 5 percent to hit US$142.50 on Thursday (May 29), extending a powerful rally that reflects Wall Street’s optimism in the chipmaker’s long-term trajectory

The company’s positive performance came despite a bruising blow from US export restrictions to China.

The semiconductor giant, seen by many industry experts as the backbone of the global artificial intelligence (AI) boom, reported better-than-expected financial results for its first fiscal quarter of 2026 on Wednesday (May 28), allaying fears that geopolitical tensions and tighter trade controls could derail its momentum.

In the face of a projected US$8 billion revenue hit from the export ban on China and a US$4.5 billion writedown on unsold inventory, investors appeared to focus on NVIDIA’s dominant position in the fast-expanding AI market.

“There is one chip in the world fueling the AI Revolution and it’s Nvidia,” wrote Dan Ives, a tech analyst at Wedbush Securities. “That narrative is clear from these results and the positive commentary from Jensen.”

NVIDIA posted quarterly revenues of US$44.1 billion, beating consensus analyst estimates of US$43.3 billion. That’s also a staggering 69 percent increase from the US$26 billion reported in the same quarter last year.

The company’s flagship data center division, which supplies AI chips to major clients like Microsoft (NASDAQ:MSFT) and Meta Platforms (NASDAQ:META), reported US$39.1 billion in sales.

Although that’s a slight miss from Wall Street’s US$39.2 billion forecast, it’s still up from US$22.5 billion last year.

“Our breakthrough Blackwell NVL72 AI supercomputer — a ‘thinking machine’ designed for reasoning — is now in full-scale production across system makers and cloud service providers,” said Jensen Huang, founder and CEO of NVIDIA.

“Global demand for NVIDIA’s AI infrastructure is incredibly strong. AI inference token generation has surged tenfold in just one year, and as AI agents become mainstream, the demand for AI computing will accelerate.”

Earlier this month, Huang traveled with US President Donald Trump to the Middle East, where the company reportedly secured orders for hundreds of thousands of chips from Saudi Arabia.

Yet NVIDIA’s latest results also expose the mounting risks the firm faces as global trade policy tightens.

In recent months, Washington has sharply escalated restrictions on semiconductor exports to China, targeting chips like NVIDIA’s H20 — a China-specific product designed to comply with US rules. The US Department of Commerce has banned shipments of these chips to Chinese firms, citing concerns about potential military applications.

The move forced NVIDIA to write off US$4.5 billion in H20 inventory, and the company estimates a US$2.5 billion revenue loss in the current quarter as a result. Huang placed the broader impact of the China restrictions at US$15 billion.

“The US$50 billion China market is effectively closed to US industry,” he said in an interview. “We are exploring limited ways to compete, but Hopper is no longer an option. China’s AI moves on with or without US chips.”

While NVIDIA has previously indicated that it could redesign chips to meet evolving US export rules, Huang has become increasingly vocal in his criticism of Washington’s policy direction. Speaking to reporters after NVIDIA’s earnings call, he described the restrictions as a “failure” that will ultimately hurt American companies more than Chinese rivals.

The pressure on NVIDIA intensified further this week, as the Financial Times reported that Trump has instructed US suppliers of chip-design software to halt sales to Chinese firms.

Nonetheless, NVIDIA’s strong earnings, coupled with a federal court ruling blocking some of Trump’s proposed tariffs, have reassured investors. AI-driven demand appears robust enough to offset near-term geopolitical volatility.

For now, the markets have spoken — and they’re betting big on NVIDIA’s future.

“Countries around the world are recognizing AI as essential infrastructure — just like electricity and the internet — and NVIDIA stands at the center of this profound transformation,” Huang emphasized post-earnings.

NVIDIA’s share price spike this week put it on track for its highest close since January, and triggered a broader rally across the semiconductor sector.

Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.

This post appeared first on investingnews.com

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In Politics

White House urges Iran to accept nuclear deal as IAEA reports uranium enrichment spike

3 Mins Read

The White House on Saturday said it is in Iran’s ‘best interest to accept’ its proposal on a nuclear deal following a report from the International Atomic Energy Agency saying the country is swiftly increasing its stockpile of near weapons-grade enriched uranium. 

‘President Trump has made it clear that Iran can never obtain a nuclear bomb,’ White House press secretary Karoline Leavitt said in a statement. ‘Special Envoy [Steve] Witkoff has sent a detailed and acceptable proposal to the Iranian regime, and it’s in their best interest to accept it. Out of respect for the ongoing deal, the administration will not comment on details of the proposal to the media.’ 

The IAEA’s report said Iran had increased its stockpile to 900.8 pounds of uranium enriched by up to 60% as of May 17, a nearly 50% increase since the agency’s last report in February, which put the stockpile at 605.8 pounds. 

The report said Iran is ‘the only non-nuclear-weapon state to produce such material,’ which is a ‘serious concern.’

The IAEA added that just 92 pounds of 60% enriched uranium is enough to produce an atomic bomb if it is enriched to 90%. 

Iran maintains that its nuclear program is for peaceful purposes, but U.S. intelligence agencies say the country has ‘undertaken activities that better position it to produce a nuclear device, if it chooses to do so.’

Iran’s Foreign Ministry and the Atomic Energy Organization of Iran said in a joint statement that the report was based on ‘unreliable and differing information sources,’ claiming that it was biased and unprofessional. 

The statement added, ‘The Islamic Republic of Iran expresses its disappointment about the report, which was prepared by imposing pressure on the agency for political purposes, and expresses its obvious objection about its content.’

On Thursday, Iran Foreign Minister Abbas Araghchi wrote on X that he was unsure a U.S.-Iran nuclear deal could be imminently reached.

‘Iran is sincere about a diplomatic solution that will serve the interests of all sides. But getting there requires an agreement that will fully terminate all sanctions and uphold Iran’s nuclear rights — including enrichment,’ he wrote. 

Oman Foreign Minister Badr al-Busaidi presented the Trump administration’s first formal proposal in Tehran Saturday, which calls for Iran to cease all uranium enrichment and for a regional consortium that includes Iran, Saudi Arabia and other Arab states and the U.S. for producing nuclear power, The New York Times reported, citing people familiar with the document. 

Israeli Prime Minister Benjamin Netanyahu’s office also put out a rare statement on a Saturday about the IAEA’s report, calling it ‘grave.’

‘The agency presents a stark picture that serves as a clear warning sign: Despite countless warnings by the international community, Iran is totally determined to complete its nuclear weapons program,’ Netanyahu’s office said. 

‘The report strongly reinforces what Israel has been saying for years — the purpose of Iran’s nuclear program is not peaceful. This is evident from the alarming scope of Iran’s uranium enrichment activity. Such a level of enrichment exists only in countries actively pursuing nuclear weapons and has no civilian justification whatsoever.

‘The report clearly indicates that Iran remains in non-compliance of its fundamental commitments and obligations under the Non-Proliferation Treaty (NPT) and continues to withhold cooperation from IAEA inspectors. The international community must act now to stop Iran.’

This post appeared first on FOX NEWS

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