The stock market closed lower on Thursday as Trump’s tariff deadline looms. This outshone blockbuster quarterly earnings from Meta Platforms (META) and Microsoft (MSFT).
Overall, S&P 500 fell 0.4% to 6,339, while NASDAQ closed flat at 21,122.
Tweet of the Day
This is Bullish https://t.co/j7K6d9utOb
— David Sharek (@GrowthStockGuy) July 28, 2025
Chart of the Day
Here is the one-year chart of Adobe (ADBE) as of July 8, 2025, when the stock was at $382.
Adobe’s AI innovation is driving steady growth. Last quarter, the company delivered 13% profit growth on 11% revenue growth. The Firefly app stood out with the introduction of Image Model 4 and the 4 Ultra version for hyper-detailed visuals, as well as the Firefly Video Model, enabling users to generate 4K video from text prompts.
Firefly now integrates not only Adobe’s own commercially safe models, but also third-party AI models from Google (GOOGL), OpenAI, and Black Forest Labs, offering creators flexibility in their workflows.
Firefly app traffic was up over 30% quarter-over-quarter (QoQ), paid subscriptions nearly doubling, and first-time subscribers increasing 30% QoQ.
Management said that AI-powered products like Acrobat AI Assistant, Firefly, and GenStudio were already driving billions in annual recurring revenue (ARR). They added that these tools were on track to surpass the $250 million ARR goal by the end of fiscal year 2025.
ADBE is part of our Conservative Growth Portfolio. David Sharek, Founder of School of Hard Stocks, thinks profits — and perhaps the stock — could grow 12% to 15% a year long-term. However, there is a “cloud” having over the stocks, and that is the risk of competition from companies like Canva, offering similar services for a fraction of the cost, and Figma, which allows multiple users to work on the same image/video at the same time.
