OptionsPlayANALYSTJul 31, 2026“Adobe's AI-disruption discount is overdone — record revenue, tripled AI revenue, and a 235 breakout point to $350 as software rotates in from semis.”
Why he says it — point by point
FAVORABLE & AGAINST · BOTH KEPTWhy
the software space that has been under pressure, if you will, ever since the AI trade has been in place is seemingly a little bit overdone
over the last 3 to 4 weeks as the semiconductor industry has sold off, one of the biggest beneficiaries of that sell-off has actually been the software industry
Adobe continues to show record revenues and record earnings despite all of the concerns.
we recently just broke out above that 235 resistance level, triggering our early breakout signal. And that 235 area now becomes a key level of support towards our 350 upside target.
Adobe is is one of the few companies that's really monetizing AI directly. They just tripled their AI um related revenue this quarter They've just raised full year revenue and EPS guidance.
Firefly and their AI workflows are becoming real revenue drivers.
the valuation, trading at nearly 10 times forward earnings, reflects a stock that is disrupted by AI, not a stock that's being helped by AI.
Risk
you would you could potentially call this a bottom-fishing expedition
The structured call
The receipt
Publish-day price $$263.43 · the claim is anchored to the moment it was said.