September 4 delivered a stark rotation. Memory, connectivity, chip-equipment, and power stocks rallied while Adobe fell 6.7% and Palantir dropped 4.5%. Adobe's decline followed news that Anil Chakravarthy will become chief executive on December 1, while Palantir faced a broader move away from richly valued software. Adobe Inc. (NASDAQ:ADBE) and Palantir Technologies Inc. (NASDAQ:PLTR) test whether investors are underestimating software monetization or correctly pricing greater disruption risk.
Adobe's bull case is embedded distribution across creative, document, and marketing workflows. Fiscal second-quarter revenue rose 13% to a record $6.62 billion, and AI-first annualized recurring revenue more than tripled to above $500 million. Chakravarthy already runs customer-experience orchestration, which could connect AI creation with enterprise activation. The bear case is that low-cost generative tools erode pricing, while its CEO and interim-CFO transitions complicate execution.
Insider Monkey counted 81 hedge funds holding Adobe Inc. (NASDAQ:ADBE) at June 30, down from 86 at March 31. Arrowstreet Capital, led by Peter Rathjens, Bruce Clarke, and John Campbell, disclosed 6,787,022 shares, roughly 0.1% fewer sequentially. The filing predates the leadership announcement.
Palantir's bull case is already visible in results. Second-quarter revenue grew 93% to $1.94 billion, U.S. commercial revenue rose 149%, and adjusted operating margin reached 62%. Its software can turn model output into governed operational decisions. The bear case is valuation, contract concentration, termination clauses, and the risk that current growth rates normalize as competitors improve.
Eighty-six hedge funds held Palantir Technologies Inc. (NASDAQ:PLTR) in Q2, down from 96 in Q1. Cathie Wood's ARK Investment Management reported 3,212,286 shares, about 3.3% more than in the prior quarter.
#revenue #chakravarthy #adbe
Adobe's bull case is embedded distribution across creative, document, and marketing workflows. Fiscal second-quarter revenue rose 13% to a record $6.62 billion, and AI-first annualized recurring revenue more than tripled to above $500 million. Chakravarthy already runs customer-experience orchestration, which could connect AI creation with enterprise activation. The bear case is that low-cost generative tools erode pricing, while its CEO and interim-CFO transitions complicate execution.
Insider Monkey counted 81 hedge funds holding Adobe Inc. (NASDAQ:ADBE) at June 30, down from 86 at March 31. Arrowstreet Capital, led by Peter Rathjens, Bruce Clarke, and John Campbell, disclosed 6,787,022 shares, roughly 0.1% fewer sequentially. The filing predates the leadership announcement.
Palantir's bull case is already visible in results. Second-quarter revenue grew 93% to $1.94 billion, U.S. commercial revenue rose 149%, and adjusted operating margin reached 62%. Its software can turn model output into governed operational decisions. The bear case is valuation, contract concentration, termination clauses, and the risk that current growth rates normalize as competitors improve.
Eighty-six hedge funds held Palantir Technologies Inc. (NASDAQ:PLTR) in Q2, down from 96 in Q1. Cathie Wood's ARK Investment Management reported 3,212,286 shares, about 3.3% more than in the prior quarter.
#revenue #chakravarthy #adbe
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