In this article, we discuss 5 best data storage stocks to buy now. If you want to read our detailed analysis of the data storage industry, click 10 Best Data Storage Stocks To Buy Now.
5. Adobe Inc. (NASDAQ:ADBE)
Number of Hedge Fund Holders: 99
Adobe Inc. (NASDAQ:ADBE) is a diversified software company that provides multiple storage solutions. One of the storage solutions offered by Adobe Inc. (NASDAQ:ADBE) is Adobe Creative Cloud, which enables users to store and access their creative files securely in the cloud. Similarly, Adobe Experience Cloud provides storage capabilities for managing and organizing digital assets within an enterprise environment. Moreover, Adobe Document Cloud offers storage capabilities for securely storing and managing electronic documents. Adobe Inc. (NASDAQ:ADBE) is one of the best data storage stocks to invest in.
On June 15, Adobe Inc. (NASDAQ:ADBE) reported a Q2 non-GAAP EPS of $3.91 and a revenue of $4.82 billion, outperforming Wall Street estimates by $0.12 and $50 million, respectively.
According to Insider Monkey’s first quarter database, 99 hedge funds were bullish on Adobe Inc. (NASDAQ:ADBE), with collective stakes worth $7.3 billion. Ken Griffin’s Citadel Investment Group is the largest stakeholder of the company.
Polen Focus Growth Strategy made the following comment about Adobe Inc. (NASDAQ:ADBE) in its Q1 2023 investor letter:
“One area we are watching regarding Alphabet and Adobe Inc. (NASDAQ:ADBE) is AI systems and their capabilities, including generative AI. Interestingly, both Adobe and Alphabet could see benefits or threats from the emergence of generative AI and large language models (LLMs). Both companies already use generative AI to the benefit of their users in anticipating how content creators edit their work (Adobe) and in how search results are anticipated and generated (Google). At the same time, breakthrough technologies like AI can open the door to additional competition and/or impact a company’s profitability levels. We now see AI systems others are developing, including LLMs and generative AI offerings, that could be more competitive in the future. While we think it remains early days for ChatGPT and the capabilities of these types of LLMs and generative AI programs like DALL-E, the technology seems to be progressing at a fast rate and will at least require a strong response from incumbents.
As of now, we believe Alphabet and Adobe are leaders in their own right in these areas and have a clear path to improving their existing offerings with AI advancements, which would allow them to be net beneficiaries of AI. There are also significant barriers to building leading AI offerings in these areas. As a result, our position sizes in Adobe and Alphabet remain sizable. For Adobe, the status of its pending $20 billion-plus Figma acquisition is also uncertain. There is a good chance, in our view, that it will be blocked by regulators, which would mean the future opportunity to expand its offerings to the developer community (beyond designers) may not occur.”
