Adding AI should spur their profits

Article Excerpt

These two software makers are adding artificial intelligence (AI) tools to their programs. That should make them more appealing to their customers and continue to fuel their earnings. ADOBE INC. $442 is a buy for aggressive investors. The software maker (Nasdaq symbol ADBE; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 435.3 million; Market cap: $192.4 billion; Price-to-sales ratio: 9.3; No dividends paid since June 2005; TSINetwork Rating: Average; www.adobe.com) operates through three main segments: The Digital Media segment’s software includes Adobe Photoshop and Adobe InDesign; the Digital Experience segment provides analytics, social marketing, targeting, media optimization, and cross-channel campaign management software, as well as premium video delivery; and the Publishing segment produces software that lets computer users create, edit and share documents in the popular PDF format. Adobe continues to benefit from its decision a few years ago to switch to selling programs as ongoing subscriptions instead of one-time purchases. In its fiscal 2024 fourth quarter, ended November 29, 2024, revenue rose 11.1%,…