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Adobe (ADBE) shares plunged nearly 9% Friday amid concerns about its weaker-than-expected outlook, but analysts were bullish on the stock, suggesting the company's projections were conservative and that it could get a boost from artificial intelligence (AI) demand.
Adobe’s Digital Media arm, which includes Creative Cloud subscriptions, brought in record net-new annualized recurring revenue (ARR) for the third quarter, but missed analysts' estimates for fourth-quarter guidance. Jefferies analysts said they suspect Adobe's outlook "could be very conservative," citing strong tailwinds from pricing and AI monetization.
The analysts said fiscal 2025 “could be the year of AI monetization" for Adobe, noting that the company is “already seeing some monetization, though early, as new users buy higher-priced plans, existing users upgrade, enterprises buy Firefly Services, and new products such as Acrobat AI Assistant get adopted.”
Upgrades by Adobe Creative Cloud subscribers to access Firefly, the company's family of generative AI models, will be a key performance indicator to watch, Bank of America analysts said.
“It is notable that Adobe is driving meaningful AI generation and running training and inferencing on large scale Firefly models, while delivering healthy margin expansion,” the analysts said, adding that it “also speaks to the advanced nature of Firefly models, relative to competing [large language models].”
Nearly three-quarters or 11 of the 15 of the analysts covering Adobe tracked by Visible Alpha held a "buy" or equivalent rating for the stock as of Friday. Their average price target of $620.86 would imply over 15% upside from Friday's closing price of $536.87.
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The U.S. government is on track to spend more than $1 trillion on interest payments this year, surpassing military spending for the first time in history.Interest payments on the national debt (held by the public in the form of Treasury securities) will cost the government $1.2 trillion in the government's fiscal year ending in October, the Treasury Department said in a monthly report on the budget. Net interest outlays are the third costliest item in the budget behind Social Security and Medicare benefits.
Economists have grown increasingly concerned about the potential impact of those payments on the U.S. economy. Interest payments took up 2.4% of the entire U.S. gross domestic product in 2023, and The Congressional Budget Office estimates that could swell to 3.9% over the next 10 years.
Two major factors have driven those payments skyward. First, the government spent trillions to support households and the economy during the pandemic, paying for it by borrowing rather than raising taxes. Second, the Federal Reserve raised interest rates starting in 2022 to fight inflation, which pushed up how much the government owes for that debt.Although the Fed is set to gradually lower those interest rates starting next week, the pressure on the budget is likely to keep ratcheting up in the years to come.The results of the presidential election could have a major impact on the trajectory of the budget deficit. Both former President Donald Trump and Vice President Kamala Harris have proposed tax cuts and new spending that could push up the budget deficit. Harris has also proposed offsetting those new costs with tax increases on the wealthy and corporations. Trump has proposed heavy tariffs on foreign goods, but mainstream economists are skeptical those would bring in much revenue compared to the impact of the tax cuts.
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The Lagos State Government has sealed off a fast food restaurant owned by Nigerian socialite, Pascal Chibuike Okechukwu, popularly known as Cubana Chiefpriest.
This was disclo on Sunday by the state’s Commissioner for Environment, Tokunbo Wahab via his X account.
According to him, the decision to seal the business was due to the restaurant’s failure to adhere to several warnings issued regarding noise pollution and other environmental violations.
He went further to share a video of loud music emanating from the premises of the fast food restaurant which was shared by an anonymous resident.
Edo 2024: Governor Obaseki's Explosive Remarks Stir Outrage, Oba of Benin's Advice Goes Viral
There was an apparent a§§a§§in@tion attempt on Republican presidential candidate Donald Trump on Sunday, September 15, while he was golfing at his course in West Palm Beach, Florida.
The FBI, which disclosed this in a statement on Sunday, said investigation is ongoing.
Secret Service agents spotted and fir£d on a g+nman in bushes near the property line of the golf course, a few hundred yards from where Trump was playing, law enforcement officials said.
The suspect left an AK-47-style a§§ault rifle and other items at the scene and fled in a vehicle but was later arrested.
This comes just two months after Trump was sh%t at a campaign rally in Pennsylvania, sustaining a minor injury to his right ear.
The suspect has been identified as Ryan Wesley Routh, 58, of Hawaii, according to CNN.
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The Nigerian National Petroleum Company Limited (NNPCL) has announced the estimated prices of Premium Motor Spirit (PMS), commonly known as petrol, to be sourced from the Dangote Refinery in September 2024.
The released pricing estimates forecast what Nigerians can expect to pay at NNPCL retail stations across different country regions.