The Zacks Analyst Blog Highlights Adobe, Microsoft, Alphabet and Apple

For Immediate ReleaseChicago, IL – September 11, 2025 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Adobe ADBE, Microsoft MSFT, Alphabet GOOGL and Apple AAPL.Here are highlights from Wednesday’s Analyst Blog:Buy, Sell or Hold Adobe Stock? Tips Ahead of Q3 EarningsAdobe is set to report its third-quarter fiscal 2025 results on Sept. 11.For third-quarter fiscal 2025, Adobe projects total revenues between $5.87 billion and $5.92 billion. The company expects non-GAAP earnings between $5.15 and $5.20 per share.The Zacks Consensus Estimate for revenues is pegged at $5.9 billion, suggesting growth of 9.09% from the year-ago quarter's reported figure. The consensus mark for earnings has been unchanged at $5.17 per share over the past 30 days, indicating 11.2% growth from the figure reported in the year-ago quarter.ADBE's earnings beat the Zacks Consensus Estimate in all the trailing four quarters, the average earnings surprise being 2.53%.Let us see how things have shaped up for ADBE stock prior to this announcement.Factors to Note Prior to ADBE's Q3 EarningsAdobe faces stiff competition in the AI and Generative AI (GenAI) space from the likes of Microsoft -backed OpenAI, as well as a lack of monetization of its AI solutions. The challenging macroeconomic environment has been a headwind for Adobe's prospects. Adobe's AI business is minuscule compared with the likes of Microsoft and Alphabet. These factors are expected to have negatively impacted Adobe's third-quarter fiscal 2025 results.Adobe has been harnessing AI to power solutions like GenStudio and Firefly Services, which have gained strong adoption. Adobe's tools, like Acrobat AI Assistant and Adobe Express, are attracting business professionals and creators. The company is witnessing steady growth across the family of Acrobat and Express products, with combined monthly active user growth accelerating to more than 25% year over year and crossing 700 million monthly active users at the end of the fiscal second quarter.Adobe's investments in conversational experiences in Acrobat and Gen AI models in Express are noteworthy. The combination of these two products is helping business professionals and consumers gain insight and create presentations much faster. Its strategy of offering an AI-powered, comprehensive creative platform that extends from idea generation through creation to mass production and delivery is addressing the needs of Creative and Marketing Professionals.Firefly is enhancing the capabilities of Creative Cloud desktop applications. The Firefly App is attracting users for AI-powered content ideation, creation and production. Its support for third-party models, including from Google's Imagen and Veo, Microsoft-backed OpenAI's image generation and Black Forest Labs' Flux, has been a key catalyst.These factors are expected to have benefited top-line growth in the to-be-reported quarter. For the third quarter of fiscal 2025, Adobe expects Digital Media segment revenues between $4.37 billion and $4.40 billion. Digital Experience segment revenues are anticipated to be in the range of $1.45-$1.47 billion. The Zacks Consensus Estimate for Digital Media and Digital Experience is pegged at $4.39 billion and $1.46 billion, respectively.ADBE Shares Underperform Sector, IndustryYear to date, Adobe shares have declined 20.4%, underperforming the broader Zacks Computer and Technology sector's return of 15.9% and the Zacks Computer Software industry's appreciation of 15.2%. Adobe shares have underperformed Microsoft, Alphabet and Apple. Over the same time frame, Microsoft and Alphabet returned 19% and 26.8% while Apple shares dropped 8.8%.The ADBE stock is not so cheap, as the Value Score of C suggests a stretched valuation at this moment.In terms of the forward 12-month price/book, Adobe's shares are trading at 13.12X, higher than the sector's 10.55X, Microsoft's 10.79X, and Alphabet's 7.99X but lower than Apple's 52.83X.Can a Strong Portfolio Boost ADBE's Prospects?Adobe's second-quarter fiscal 2025 results indicate that the company is catching up through the expansion of its AI portfolio with GenStudio and Firefly Services. Adobe's AI book of business from AI-first products, including Acrobat AI assistant, Firefly App and Services and GenStudio for Performance Marketing, is tracking ahead of the $250 million ending Annual Recurring Revenue (ARR) target by the end of fiscal 2025.The company's latest Acrobat Studio, which unites Adobe Acrobat, Adobe Express and AI agents, is expected to help Adobe expand its footprint among business and creative professionals, as well as students. Acrobat Studio converts PDFs into a conversational knowledge hub that users, with the help of a customizable AI assistant, can delve into to gain insights, answers and recommendations. Adobe Express creation tools and templates, as well as Firefly-powered image and video generation tools, can then be used to create content from the gathered information.ConclusionAdobe's prospects benefit from strong demand for its creative products. However, Adobe is suffering from increasing competition in the GenAI space from the likes of OpenAI, as well as a lack of monetization of its AI solutions.Adobe currently has a Zacks Rank #4 (Sell), suggesting that it may be wise to avoid the stock ahead of the fiscal third quarter results.You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.Why Haven't You Looked at Zacks' Top Stocks?Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.Today you can access their live picks without cost or obligation.See Stocks Free >>Media ContactZacks Investment Research800-767-3771 ext. 9339support@zacks.com                                      https://www.zacks.com                                                   Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.5% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>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 Apple Inc. (AAPL): Free Stock Analysis Report Microsoft Corporation (MSFT): Free Stock Analysis Report Adobe Inc. (ADBE): Free Stock Analysis Report Alphabet Inc. 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