I think AI is a tailwind to Adobe. Cash cow + a startup style optionality build in.

I think AI is a tailwind to Adobe. The slightly lower organic growth is because company reduced the paywalls for their products and made it smoother for new users(Freemium ) to experience adobe and its features. Gets the users hooked to new AI workflow first, later they can slowly monetize them.

I argue Adobe is going back to a "rapid expansion phase" of business cycle from its present "Mature business phase". If you look at the number of new users growth(MAU) and AI revenue growth, we can see rapid expansion in the past few quarters. It is like a total new startup branch rapidly growing. I think what management is trying to do makes sense. They can either keep status quo and keep charging high SAAS like revenues and slowly get disrupted by someone like Canva or become the disruptor themselves and grab the new market.

Also future of media production will be more and more with the support of AI, so a regular media campaign budget will shift a bit from physical to digital AI spends. Working with Adobe is not single media generation like present day LLM's, it is a multi layered complex media , that is super HD quality with tons of data and layers , multi artists collaborative, team work that needs multiple iterations and the output often has to fit many types of media. I just cant imagine how LLMs and data centers can process all this data. It eventually again has to be some kind of software with user interface may be with some kind of generative AI attached to it.

Wall street seems to not understand how creative arts work and how the Industry Pros works.

At these depressed valuations we are basically getting a cash cow + a startup style optionality in built. Also management is rapidly buying back shares, so for someone who is already holding Adobe shares, management doing the average downing part on their behalf. lol End of the day any investment has to be seen from a larger portfolio and risks perspective. I don't see why Adobe cant be a decent position for any long-term investor portfolio at these valuations.