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#286: The S&P 500’s Most Undervalued Stock?

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Manage episode 519191712 series 2867525
Content provided by MyWallSt. All podcast content including episodes, graphics, and podcast descriptions are uploaded and provided directly by MyWallSt or their podcast platform partner. If you believe someone is using your copyrighted work without your permission, you can follow the process outlined here https://podcastplayer.com/legal.

As SoftBank sells off its Nvidia holdings to free up capital for OpenAI, it might be time to look for something with a less eye-watering valuation.

Adobe, once one of Wall Street’s most beloved SaaS players, is down nearly 50% since 2024 despite rock-solid margins and consistent revenue growth. This has made it one of the cheapest stocks in the S&P 500 on a price-to-earnings basis and has bargain-hunting investors champing at the bit.

However, Mike argues that Adobe’s sell-off stems from the market’s pessimistic outlook on the brand following the rise of AI-generated imagery. While Adobe has invested heavily in its own AI-powered tools—namely Firefly—competition from OpenAI and Google may undercut Adobe’s dominance across the creative stack.

Do you think Adobe can stage a comeback, or is it a falling knife?

To wrap up, Emmet walks us through one of Prophet’s latest stock picks: UL Solutions Inc.

Our Horizon portfolio is a boutique service led by our co-founder and lead investor, Emmet Savage. Emmet has built his career on finding life-changing investments and believes the next hundred-bagger is already within his holdings. According to 100-bagger expert Chris Mayer, “no one owns more 100-baggers than Emmet.”

To claim your exclusive Horizon discount, email us at [email protected].

Become a successful investor by checking out all the content MyWallSt has to offer:

📩 Email us: [email protected]

📚 Learn the fundamentals of investing by downloading our free Learn app: https://bit.ly/3DXPOz7

💻 Keep updated on stock market news by visiting our blog: https://mywallst.com/blog/

🎧 Tune in to our podcast Stock Club to stay updated on weekly news: https://mywallst.com/stock-investment-podcast/

🎉 Follow MyWallSt on social:

❌ X: @MyWallStHQ

💃 TikTok: @MyWallSt

📸 Instagram: @MyWallSt

🖥️ Facebook: @MyWallSt

👔 LinkedIn: MyWallSt

00:00 Intro06:25 Adobe’s History and Evolution15:25 Current Financial Performance and Market Position24:22 The Impact of AI on Adobe and Graphic Design28:19 The Bull and Bear Case for Adobe35:19 Highlighting UL Solutions

  continue reading

285 episodes

Artwork
iconShare
 
Manage episode 519191712 series 2867525
Content provided by MyWallSt. All podcast content including episodes, graphics, and podcast descriptions are uploaded and provided directly by MyWallSt or their podcast platform partner. If you believe someone is using your copyrighted work without your permission, you can follow the process outlined here https://podcastplayer.com/legal.

As SoftBank sells off its Nvidia holdings to free up capital for OpenAI, it might be time to look for something with a less eye-watering valuation.

Adobe, once one of Wall Street’s most beloved SaaS players, is down nearly 50% since 2024 despite rock-solid margins and consistent revenue growth. This has made it one of the cheapest stocks in the S&P 500 on a price-to-earnings basis and has bargain-hunting investors champing at the bit.

However, Mike argues that Adobe’s sell-off stems from the market’s pessimistic outlook on the brand following the rise of AI-generated imagery. While Adobe has invested heavily in its own AI-powered tools—namely Firefly—competition from OpenAI and Google may undercut Adobe’s dominance across the creative stack.

Do you think Adobe can stage a comeback, or is it a falling knife?

To wrap up, Emmet walks us through one of Prophet’s latest stock picks: UL Solutions Inc.

Our Horizon portfolio is a boutique service led by our co-founder and lead investor, Emmet Savage. Emmet has built his career on finding life-changing investments and believes the next hundred-bagger is already within his holdings. According to 100-bagger expert Chris Mayer, “no one owns more 100-baggers than Emmet.”

To claim your exclusive Horizon discount, email us at [email protected].

Become a successful investor by checking out all the content MyWallSt has to offer:

📩 Email us: [email protected]

📚 Learn the fundamentals of investing by downloading our free Learn app: https://bit.ly/3DXPOz7

💻 Keep updated on stock market news by visiting our blog: https://mywallst.com/blog/

🎧 Tune in to our podcast Stock Club to stay updated on weekly news: https://mywallst.com/stock-investment-podcast/

🎉 Follow MyWallSt on social:

❌ X: @MyWallStHQ

💃 TikTok: @MyWallSt

📸 Instagram: @MyWallSt

🖥️ Facebook: @MyWallSt

👔 LinkedIn: MyWallSt

00:00 Intro06:25 Adobe’s History and Evolution15:25 Current Financial Performance and Market Position24:22 The Impact of AI on Adobe and Graphic Design28:19 The Bull and Bear Case for Adobe35:19 Highlighting UL Solutions

  continue reading

285 episodes

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