The Potential Drivers for Adobe Inc
Adobe Inc. (ADBE) is perceived as an “early winner” in the generative artificial intelligence trend. The company plans to reveal more details about its monetization objectives during an analyst day event scheduled for late March. Materne opines that this event could reveal important insights into Adobe’s future growth prospects and potentially attract new investors. Furthermore, Adobe’s initial outlook for fiscal year 2025 indicates the potential for increased revenue and improved margins.
Workday Inc: A Possible Addition to the S&P 500
Materne believes that if Workday Inc. (WDAY) is added to the S&P 500 index, the stock could draw additional investors. He expects the company’s initial fiscal year 2025 forecast to account for possible top-line and margin improvements, which might contribute to a higher valuation multiple for the stock.
Snowflake Inc: A Turnaround in Sight
According to Materne, Snowflake Inc. (SNOW) is poised to return to its previous beat-and-raise pattern of exceeding expectations. Despite the potential criticism from pessimists if the guidance for fiscal year 2025 falls within the 28-30% range, Materne anticipates that Snowflake’s revenue will accelerate throughout the year. This positive trend would likely shift the narrative surrounding the company.
The Key to Oracle Corp’s Growth
Oracle Corp. (ORCL) presents a more complex narrative due to its multiple business segments. However, Materne suggests that Oracle Cloud Infrastructure (OCI) is the crucial factor for the company’s stock value. Materne acknowledges that the initial positive sentiment surrounding Oracle’s cloud offering may have been overstated, as the company’s focus on cloud infrastructure is narrower compared to competitors like Azure and AWS. Nonetheless, Materne expects the narrative around Oracle to become clearer by fiscal year 2025 once tough comparisons from the fourth quarter of fiscal year 2024 are left behind.