Billionaire Kerr Neilson’s 10 Stock Picks with Huge Upside Potential

3. Adobe Inc. (NASDAQ:ADBE)

Upside Potential: 28.24%

Billionaire Kerr Neilson has bought over $1 million worth of shares in Adobe Inc. (NASDAQ:ADBE), representing 0.06% of his stock portfolio, securing the company a spot in Billionaire Kerr Neilson’s 10 Stock Picks with Huge Upside Potential.

For Q2 FY25, Adobe Inc. (NASDAQ:ADBE) reported revenue of $5.87 billion, a YoY increase of 11%. Meanwhile, its GAAP EPS grew by 13% to $3.94 per share. Furthermore, the company’s Digital Media segment achieved an ARR of 12.1% ($18.09 billion), contributing to record Q2 operating cash flow of $2.19 billion.

Despite strong Q2 results, Redburn Rothschild reduced its price target for Adobe Inc. (NASDAQ:ADBE) from $420 to $280, downgrading it to a ‘Neutral’ rating. This downgrade, which occurred on July 2, 2025, is attributed to the much-anticipated IPO of Figma, which filed an update regarding its IPO offering on July 1, 2025. According to the official announcement, the rival firm has filed a registration on Form S-1 with the U.S. SEC for the proposed IPO of its Class A common stock. This potential IPO of Figma raises concerns around Adobe’s competitive position in the market, particularly after its failed $20 billion acquisition of Figma in 2023.

Nevertheless, Adobe Inc. (NASDAQ:ADBE) is progressing well and is already ahead of its $250 million AI revenue goal for FY25, thanks to its Firefly and Acrobat AI Assistant tools. Moreover, its full-year guidance remains the same, indicating FY25 EPS of $20.50-$20.70.

Adobe Inc. (NASDAQ:ADBE) offers Digital Media and Digital Experience platforms, delivering creative, document, and experience-based solutions to creators, marketers, and enterprises globally.