AI Isn't a Threat for Adobe Stock. Here's Why.

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Thank you for this very good, in-depth analysis. This is one of the best channels out there. Keep it up!

I know you discuss a lot of tech stocks, profitable ones as well as not. I was wondering if you could reflect on value traps in more seasoned companies and what to be watching for. How do you figure out if you're in a value trap? Many value investors are licking their chops over a company like Nike, but I'm not convinced its a good investment because--you know--value traps.

Google is the company that had been using AI for the past 30 years but people had never pumped up the AI hype until Cathie Woods and NVIDA came aboard then it became God given tools.

Maybe GITLAB is the SaaS / AI company what people are looking to find in ADOBE. When taking the reference to the gold rush and it was better to invest into the shovel vendors, this is company is one of the shovel vendors. Might be interesting for you and your audiance to set a focus on this sector and on GITLAB as the high margin technical leader!

I'm a cheap artist, I use free software when possibly, such as blender 3d and one-time payment to have clip studio pro. Only for some projects I'll download Adobe and only keep it for a few months.

I think stock photo companies like Shutterstock, Getty Image, and others probably face a greater threat than Adobe. The main reason professionals are still willing to pay very expensive licenses is that AI generated images take too long to generate, and they are just not very good YET in terms of the quality of the renderings and matching a user's description of what they want. However, this will not be a problem in the not so distant future when real and AI generated images will be indistinguishable. By that time, the only sellable images stock photo companies will have left are historical images, images of famous people and celebrities, and those made by well-known photographers. Adobe will not be negatively impacted by AI as much, because professionals who already use Photoshop still need it to correct or enhance their self-produced images. Photoshop will be even more desireable IF they can improve their in-house AI program to produce high-quality AI images. They kind of suck right now.

AI is a merely mathematical machine that generates snapshots of images that had connected together by related functioning logics. Up to the present, AI still lacks the necessary feedback loop to check for validity of images to ensure meaningful contexts that it generated. Like the picture that shows the Egyptian girl with the unreal hands that were generated by AI without validity check for physical meaning from human perspectives through human emotion, logical thinking and physical law of physics. When we sleep we sometimes have dreams that generated by our AI network brain but the images of the dreams are pure form and certainly not checked for validity and hence they don't make sense with reality then the brain won't store and learn the images of dreams. Does it sound crazy?