TSP Weekly Tech Stock Update—Dec 9, 2023

This Week: Adobe earnings preview, PANW hits record high, GitLab delivers strong results, WDAY/NOW/ESTC/CRWD new 52-week highs, 2 new Datadog bulls, Five9 buyout chatter, Monday's upbeat investor day.

Hello from Rob…

—Apple (AAPL, $195.71—Vulture Portfolio) shares this week easily outperformed the Nasdaq, gaining 2.3%. The stock has rebounded 18% from the late-October low of $165.67. The valuation once again tops $3 trillion.

—Ahead of the release of FQ4 (Nov.) results from Adobe (ADBE, $610.01) on Wednesday, BMO Capital raised its price target to $690 from $670, saying it sees upside to Digital Media net new ARR estimates for the quarter.

In FQ3 (Aug.), Digital Media net new ARR totaled $464 million, well above the guide of $410 million. The company’s outlook for FQ4 is $520 million. Longer-term, BMO thinks investors might be overlooking the potential for Document Cloud to be a material AI beneficiary.

Mizuho boosted its Adobe target to $680 from $630 based on recent checks that show healthy demand across enterprise customers. The firm also sees upside to FQ4 Digital Media net new ARR.

*Inside This Issue: MongoDB (MDB, $381.79—TSP Small-Cap Portfolio) FQ3 earnings review. The stock pulled back following the FQ3 report after rallying 38% from the October 26 low of $321 to the November 30 high of $442.84.

—Paid subscribers will receive the December 2023 PDF of Tech-Stock Prospector (TSP #262) via email on Tuesday, December 12.

—Paid subscribers have access to the TSP Market Overview and TSP Portfolio Updates sections inside this issue.