Latest news with #JacksonAder
Business Insider
4 days ago
- Business
- Business Insider
Five9 initiated with an Overweight at KeyBanc
KeyBanc analyst Jackson Ader initiated coverage of Five9 (FIVN) with an Overweight rating and $35 price target as part of a broader research note launch coverage of select Enterprise Software names. AI will provide a near-term lift to the company's ARPU – average revenue per user – particularly in the enterprise, which is underappreciated in forecasts, the analyst tells investors in a research note. Confident Investing Starts Here: Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>>
Business Insider
4 days ago
- Business
- Business Insider
Zoom Communications initiated with an Underweight at KeyBanc
KeyBanc analyst Jackson Ader initiated coverage of Zoom Communications (ZM) with an Underweight rating and $73 price target Confident Investing Starts Here: Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>>
Yahoo
09-04-2025
- Business
- Yahoo
Microsoft's Capex Wiggle Room May Ease AI Spending Cut Fears, Says KeyBanc
KeyBanc Capital Markets believes Microsoft (NASDAQ:MSFT) retains considerable discretion over its capital expenditures, despite recent speculation that it may be scaling back some artificial intelligence-related investments. Warning! GuruFocus has detected 1 Warning Sign with MSFT. In a client note, analyst Jackson Ader pointed out that the company's expense commitments are largely influenced by data center construction and procurement contracts. These are categorized in Microsoft's disclosures as commitments primarily related to datacenters, including open purchase orders and take-or-pay agreements, rather than traditional construction obligations. According to Ader, who maintains an Overweight rating on the stock with a $575 price target, these agreements account for a significant share of Microsoft's short-term financial obligations. Specifically, for fiscal 2025, they represent 61.8% of non-debt commitments, in contrast to 27.1% for the same period last year. He noted that since a large portion of the company's upcoming spending is tied to such flexible arrangements, the company is not locked into rigid long-term commitments. Ader views Microsoft's ability to adjust its capex strategy as a supportive factor for shareholders. This article first appeared on GuruFocus. Sign in to access your portfolio
Yahoo
13-03-2025
- Business
- Yahoo
Adobe Tumbles 10%, But AI Growth Could Fuel a Comeback
Adobe (NASDAQ:ADBE) took a 10% hit in early trading Thursday after reporting its latest financial results, but analysts see potential for a rebound as the company ramps up its generative AI revenue. Mizuho's Gregg Moskowitz admitted that Adobe's stock has been frustrating in fiscal 2024. However, he pointed out that the company is finally starting to see real gains from its AI efforts. While Mizuho trimmed its price target from $620 to $575, it stuck with an Outperform rating, expecting revenue and annual recurring revenue (ARR) to pick up next year. KeyBanc took a more cautious stance, keeping its Underweight rating and lowering its target to $390 from $450. Analyst Jackson Ader noted that Adobe's AI ARR from four standalone products hit $125 million, with plans to double that by year-end. Meanwhile, Citizens analysts, led by Patrick Walravens, held a Market Perform rating, pointing to rising competition from Canva and Figma as a key challenge. They believe Adobe's real opportunity lies in using AI to streamline workflows across its Creative, Document, and Experience clouds. On the earnings call, CEO Shantanu Narayen emphasized that AI-driven tools like Acrobat AI Assistant, Firefly App, and GenStudio are already adding more than $125 million in ARR, with expectations to double that figure by the end of fiscal 2025. This article first appeared on GuruFocus.
Yahoo
30-01-2025
- Business
- Yahoo
Microsoft results highlight AI spending isn't slowing down
Microsoft (MSFT) shares are trading lower after the tech giant's cloud revenue missed, overshadowing its earnings beat. The earnings report comes just after China's DeepSeek announced a new model raising concerns about US companies' ability to compete. KeyBanc Capital Markets equity research analyst Jackson Ader joins Morning Brief with Seana Smith and Brad Smith to discuss what Microsoft's results signal about the artificial intelligence (AI) landscape. "Microsoft continues to kind of lead the way on [capital expenditure] CapEx spend," Ader says, adding, "They're a $3 trillion-plus company, so they've got cash to spare." Microsoft's capital spending hit $22.6 billion during the fiscal second quarter. "They expect the numbers in third quarter and fourth quarter to be in line with that and then probably grow next year," Ader says, noting that the hefty spending plans squash any concerns about Big Tech pulling back on AI investments. The analyst explains that part of what's driving Big Tech's massive AI spending is the "uncertainty in the amount of compute" needed for the rapidly evolving tech. "The AI version of the cloud looks a little bit more like the internet, where we think we're going to use a ton of it, but we're not really sure how much we are going to use," Ader explains. "That added uncertainty means that you have to spend a lot of money without predetermined ROI, and without [a] predetermined total cost of ownership coming down like we had in cloud 1.0 creates a little bit of extra risk." When asked about DeepSeek's advancements and what it means for other AI players like Microsoft, Ader says the Chinese AI startup's breakthroughs may actually benefit Microsoft. To watch more expert insights and analysis on the latest market action, check out more Morning Brief here. This post was written by Naomi Buchanan.
