Enduring US Inflation: A Long Way to Rate Cuts? [Learn Premium Weekly Review]

Learn more details: News Decoding: GTC on the Horizon: Can NVIDIA Expect a Stock Boost?

After hours on Thursday, $Adobe(ADBE.US)$ a US multinational computer software company released its 2024 first-quarter financial report, which shows its first-quarter revenue and adjusted EPS both beat expectations. However, its Q2 guidance was slightly lower than expected, leading to an after-hours drop of more than 11%.

Comments suggest that Adobe's lower-than-expected guidance is due to the intensification of the AI competition landscape. Back at the beginning of 2023, the rise of early AI image generators such as Dall-E kept Adobe in the doldrums. However, Adobe also launched its own AI tool, Firefly, in March, and since its launch, Adobe's stock price has rebounded, rising by 77% within the year.

Similarly, the announcement of Open AI's Sora text-to-video tool in February of this year compounded Adobe's challenges and further weakened its stock price. So far this year, Adobe's stock price is down 4%, worse than the 8% performance of the $S&P 500 Index(.SPX.US)$ over the same period.

Despite this, analysts still rate the Adobe stock a "buy." On the one hand, AI models are far from being able to generate perfect content and cannot completely replace traditional video creation tools such as Adobe's core products. On the other hand, Adobe, which is deeply involved in the image and video creation industry, is also developing new AI products and models to drive the development of its own business.

So, do you think $Adobe(ADBE.US)$ will take advantage of the AI trend to further its development? Or it will continue to be affected by the impact of AI-generated images and videos.

Riding the wave of AI, global semiconductor companies, and chip giant $Advanced Micro Devices(AMD.US)$ has shown strong upward momentum, repeatedly hitting new records. It ascended from the 222nd to the 22nd largest company in the S&P 500 within five years. Now it's trading at a steep 50 times estimated earnings, significantly higher than Nvidia's 32 times. Although there is no obvious potential resistance to the price, selling pressures might occur as some traders lock in profits.

Bitcoin breaks through $73,000, hitting a new all-time high! Its value has jumped more than 70% since the beginning of the year, which is even more impressive! The [ cryptocurrency concept ] stocks of $Coinbase(COIN.US)$, $Marathon Digital(MARA.US)$, and $MicroStrategy(MSTR.US)$ have even outperformed bitcoin itself last year.

$Coinbase(COIN.US)$ is currently the world's leading exchange for buying and selling cryptocurrency assets, and its share price rose more than 300% last year. $Marathon Digital(MARA.US)$ is the world's largest Bitcoin mining company, whose share price rose 250% in 2023, and its business model is to pursue cost efficiency through energy arbitrage. $MicroStrategy(MSTR.US)$ is primarily an enterprise software company and is also one of the world's largest holders of bitcoin-listed companies. Its bitcoin holdings account for more than half of its market value, and its stock price is up 538% over the past year.