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Adobe (ADBE) stock soars to record high amid cheaper competition

Shares of Adobe Inc. (NASDAQ: ADBE) soared to a record high of $385 on Wednesday amid speculation that its future lies in artificial intelligence, machine learning, and cloud. The company continues to be a monopoly in the digital media and digital marketing space, despite facing cheaper competition in the market.

The company continues to focus on investments in the two strategic growth areas of digital media and digital experience while offering a broad portfolio of products, services, and solutions. In digital media, Adobe has a significant market opportunity, backed by recent technology trends in digital communications.

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Adobe remains in a strong position to capitalize on digital content opportunities through innovation. This will accelerate the creative process across all platforms and devices, deepen engagement with communities and accelerate long-term revenue growth, leveraging the cloud-based offerings licensed on a subscription basis.

For the company, there is a significant opportunity for growth across all customer segments. The Adobe Creative Cloud is expected to drive sustained long-term revenue growth through continued expansion of the customer base. That can be achieved using technologies like 3D, augmented reality, cloud-enabled collaboration, Adobe Sensei’s artificial intelligence, and machine learning capabilities.

The company believes that the market for Adobe Experience Cloud is large and rapidly growing as an increasing number of enterprises go digital to enhance their profitability. The company believes that AI and machine learning framework, enabled by Adobe Sensei, enhance the digital experience.

Read: Advanced Micro Devices stock soars on bullish outlook

Adobe has made significant investments to broaden the scale and size of all of the routes to market, after its strategic partnership with Microsoft (NASDAQ: MSFT). The company expects these investments to result in continued revenue growth in the Digital Experience segment in fiscal 2020 and beyond.

Experts are of the view that the company’s future performance will benefit from investments in the digital media and digital experience segments. Also, they expect the stock to head higher as cheaper competition has failed to weaken the strength of Adobe’s products and cloud integration.

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