Latest news with #AIcompetition
Bloomberg
3 days ago
- Business
- Bloomberg
Bloomberg Technology 6/5/2025
Bloomberg Technology hits the road with Ed Ludlow and Caroline Hyde live from the Tech Summit in San Francisco. They speak with Anduril Executive Chairman Trae Stephens about the company's latest fundraise and the future of defense tech, Agility Robotics CEO Peggy Johnson about her outlook for the robotics industry, and they hear from Alphabet CEO Sundar Pichai on AI competition on the horizon. (Source: Bloomberg)
Yahoo
24-05-2025
- Business
- Yahoo
Apple Faces 'First Serious Threat In 20 Years' As OpenAI Acquires iPhone Maker's Former Design Chief Jony Ive's Hardware Startup, Says Gene Munster
Gene Munster, Managing Partner at Deepwater Asset Management, warned Wednesday that OpenAI represents the first serious competitive threat to Apple Inc. (NASDAQ:AAPL) in two decades following the artificial intelligence company's $6.5 billion acquisition of former Apple design chief Jony Ive's hardware startup. What Happened: 'The real risk for AAPL is whether the threat of these devices from OpenAI compresses Apple's multiple,' Munster wrote on X, highlighting concerns about the iPhone maker's premium valuation amid intensifying AI competition. OpenAI announced plans to acquire io Products, Ive's AI device startup, in an all-stock transaction that values the company at $6.5 billion despite having no revenue. The deal adds Ive and approximately 55 hardware engineers to OpenAI's team as the ChatGPT maker pivots into consumer devices expected to launch in 2026. Trending: Maker of the $60,000 foldable home has 3 factory buildings, 600+ houses built, and big plans to solve housing — Munster characterized the move as part of a generational technology shift comparable to the internet and smartphone revolutions. 'Before AI, there was no real threat to Apple's or Google's business,' he noted, emphasizing that OpenAI is 'catalyzing this shift into something tangible.'Why It Matters: The acquisition triggered over 2% decline in Apple shares on Wednesday as investors weighed the competitive implications. Ive, who designed iconic Apple products including the iPhone, left the company in 2019 after nearly three decades. However, Munster tempered concerns about Apple's competitive position, citing the company's ecosystem lock-in with an estimated 1.7 billion users across 2.35 billion active devices. 'It's going to take more than a great phone from OpenAI to get Apple users to walk away from a decade of investment in hardware and services,' he analyst suggested Alphabet Inc. (NASDAQ:GOOGL) (NASDAQ:GOOG) faces greater risk, noting that Google's ecosystem integration is 'not nearly as strong' as Apple's hardware-software integration. OpenAI previously held a 23% stake in io Products before moving to full acquisition. The transaction requires regulatory approval and is expected to close within months, positioning OpenAI to compete directly with established hardware manufacturers in the emerging AI device market. Apple's stock has a negative price trend over the short to long term, but it performs well on quality metrics, according to Benzinga Edge Stock Rankings. Growth and momentum performance for AAPL are modest, and the company's valuation seems low. Image Via Shutterstock Read Next: Hasbro, MGM, and Skechers trust this AI marketing firm — Invest before it's too late. 'Scrolling To UBI' — Deloitte's #1 fastest-growing software company allows users to earn money on their phones. You can invest today for just $0.30/share with a $1000 minimum. Send To MSN: Send to MSN UNLOCKED: 5 NEW TRADES EVERY WEEK. Click now to get top trade ideas daily, plus unlimited access to cutting-edge tools and strategies to gain an edge in the markets. Get the latest stock analysis from Benzinga? This article Apple Faces 'First Serious Threat In 20 Years' As OpenAI Acquires iPhone Maker's Former Design Chief Jony Ive's Hardware Startup, Says Gene Munster originally appeared on Sign in to access your portfolio
Globe and Mail
21-05-2025
- Business
- Globe and Mail
Adobe Jumps 19% in a Month: Is There Any Momentum Left in the Stock?
Adobe ADBE shares have jumped 19% in a month, reflecting its deepening Generative AI (Gen AI) focus and innovative Gen AI-powered portfolio. A pause in tariffs that reduced macroeconomic uncertainty also helped the stock. However, Adobe's near-term prospects remain challenging given stiff competition in the AI and GenAI space from the likes of Microsoft MSFT -backed OpenAI, as well as a lack of monetization of its AI solutions. Adobe's AI business is minuscule compared with the likes of Microsoft and Alphabet GOOGL. Microsoft's Intelligent Cloud revenues are benefiting from growth in Azure AI services and a rise in AI Copilot business. Alphabet's Google Cloud is benefiting from accelerated growth across AI infrastructure, enterprise AI platform Vertex and strong adoption of Gen AI solutions. Stiff competition has negatively impacted Adobe shares, which have underperformed peers like Microsoft and document services & e-signature provider DocuSign DOCU over the past month, but outperformed Alphabet. Microsoft, DocuSign and Alphabet shares returned 24.9%, 20.9% and 8.2%, respectively, over the same timeframe. The challenging near-term prospect is expected to remain an overhang on the Adobe shares. ADBE Stock's Performance Adobe shares are also overvalued, as suggested by a Value Score of D. ADBE stock is trading at a premium with a forward 12-month price/sales of 7.28X compared with the broader Zacks Computer and Technology sector's 6.14X, Salesforce's 6.61X, DocuSign's 5.69X and Alphabet's 5.90X. Price/Sales Ratio (F12M) So, what should investors do with Adobe shares right now? Let's dig deep to find out. Can Adobe's Innovative Portfolio Boost Prospects? Adobe has expanded its AI portfolio with Adobe GenStudio and Firefly Services, which help brands and their agency partners collaborate on marketing campaigns. Adobe launched Firefly Video Model-powered Generative Extend in Premiere Pro, which leverages AI to instantly generate and expand the length of video and audio clips. Adobe introduced a new version of After Effects with a high-performance preview playback engine, powerful new 3D motion design tools and HDR monitoring. New V4 upgrades include expanded storage that scales with teams. Adobe plans to monetize standalone subscriptions for Firefly through the introduction of multiple Creative Cloud offerings that include Firefly tiering. Adobe plans to invest in its sales capacity to deliver Adobe-wide offerings across business, education and government. The integration of AI Assistant in Acrobat, Reader and Express bodes well for Adobe's prospects. ADBE is infusing Gen AI innovations across its portfolio, including AI-first standalone and add-on products such as Acrobat AI Assistant, Firefly App and Services, and GenStudio for Performance Marketing. These factors are expected to boost top-line growth. Adobe Offers Positive Guidance for FY25 Adobe's new AI book of business (more than $125 million exiting the first quarter of fiscal 2025) was a roughly low single-digit percentage of total revenues ($4.23 billion in the fiscal first quarter). ADBE expects this AI book of business to double by the end of fiscal 2025. For fiscal 2025, Digital Media Annual Recurring Revenue is now expected to grow roughly 11%. Digital Media segment revenues are expected to be between $17.25 billion and $17.40 billion. Digital Experience segment revenues are expected between $5.8 billion and $5.9 billion, while Digital Experience subscription segment revenues are expected between $5.375 billion and $5.425 billion. Adobe reaffirmed its total revenue guidance, which is expected between $23.30 billion and $23.55 billion ($21.51 billion in fiscal 2024). Fiscal 2025 non-GAAP earnings are still expected between $20.20 and $20.50 ($18.42 per share in fiscal 2024). ADBE's 2025 Estimate Revision Trend Shows Decline For fiscal 2025, the Zacks Consensus Estimate for earnings is pegged at $20.36 per share, down by 5 cents over the past 60 days. The figure indicates 10.53% growth over fiscal 2024. The Zacks Consensus Estimate for second-quarter fiscal 2025 earnings is pegged at $4.96 per share, down by a penny over the past 60 days, suggesting 10.71% growth from the year-ago quarter. ADBE's earnings beat the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 2.53%. Here is Why You Should Avoid ADBE Adobe's modest near-term growth prospect and stretched valuation makes the stock unattractive for investors. The stock is currently trading below the 200-day moving average, indicating a bearish trend. ADBE Stock Trades Below the 200-Day SMA ADBE currently has a Zacks Rank #4 (Sell), which implies that investors should avoid the stock for the time being. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Zacks Names #1 Semiconductor Stock It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom. With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028. See This Stock Now for Free >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Microsoft Corporation (MSFT): Free Stock Analysis Report Adobe Inc. (ADBE): Free Stock Analysis Report Alphabet Inc. (GOOGL): Free Stock Analysis Report Docusign Inc. (DOCU): Free Stock Analysis Report This article originally published on Zacks Investment Research (
