OptionsPlayANALYSTJul 31, 2026“Adobe is a bottom-fishing opportunity — the software sell-off looks overdone, rotation from semis is underway, and record earnings plus direct AI monetization support a $350 target.”
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. Q2 revenue was up 30 13% year-over-year. They just tripled their AI um related revenue this quarter, and which is now running greater than $500 million dollars just AI related services. They've just raised full year revenue and EPS guidance.
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.
The structured call
The receipt
Publish-day price $$263.43 · the claim is anchored to the moment it was said.