Ahead of Adobe (ADBE) and Oracle (ORCL) reporting earnings, BNP Paribas Exane global head of software research Stefan Slowinski joins Julie Hyman and Josh Lipton on Market Domination to discuss his strategy for navigating software stocks in 2025, which he expects to be the year of artificial intelligence (AI) agents.
Slowinski says the software sector has made a “180-degree turn” in the last six months of 2024, with a “turn in sentiment” that “AI agents are finally the killer app that allows companies to monetize Gen AI.”
Among the software players, Slowinski names Salesforce (CRM) and Oracle (ORCL) as stocks still trading at “reasonable” valuations that are positioned to gain from the adoptions of AI agents and copilots.
On the other hand, Adobe (ADBE) is one he has worries about. “Part of our concern around Adobe is just the increasing competition from the hyperscalers,” like Alphabet (GOOG, GOOGL), Meta (META), Amazon (AMZN), and Microsoft (MSFT).
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This post was written by Naomi Buchanan.