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Adobe Dips, AppLovin Soars: Your S&P 500 Insights · The SPY Trader

• 0:00
  Hello and welcome to another episode of Spy Trader,
• 0:03
  the podcast where we break down the most recent financial news affecting the S&P 500,
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  It's your quirky host,
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  Money McJokes,
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  here to deliver today's financial insights on September 28,
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  2024,
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  at 6:00 AM,
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  Today,
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  we'll dive into Adobe's latest earnings reports,
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  look at AppLovin’s meteoric rise,
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  and explore the implications for investors,
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  Plus,
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  a joke: "What do you call a financial planner's autobiography?
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  'Life in Accounts,
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  '"
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  Adobe (ADBE) reported strong earnings for FQ3 2024 with $5,
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  41 billion in revenue,
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  an 11% yearoveryear increase,
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  and earnings per share of $3,
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  76,
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  beating expectations,
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  Despite this,
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  Adobe’s stock dropped 14% for the year,
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  The selloff was due to management's conservative FQ4 guidance projecting slower revenue growth of $5,
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  5–$5,
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  55 billion,
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  missing expectations,
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  However,
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  Adobe holds a strong market position with a 58% share in app development and a solid future revenue pipeline,
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  evidenced by a 15% yearoveryear growth in Remaining Performance Obligations to $18,
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  14 billion,
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  Next,
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  AppLovin (APP),
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  a mobile tech company,
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  has seen its stock surge by 242% over the past year due to strong earnings,
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  a recovering tech sector,
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  and broker upgrades,
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  Their AIpowered advertising engine,
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  AXON 2,
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  0,
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  and the acquisition of MoPub have driven this success,
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  AppLovin’s software revenue increased by 75% yearoveryear to $711 million in Q2 2024,
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  and earnings per share rose by 304,
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  5% to $0,
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  89,
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  Despite a high P/E ratio of 26,
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  3,
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  the expected earnings growth of 33,
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  4% over the next 3–5 years gives it a PEG ratio of 0,
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  79,
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  indicating potential undervaluation,
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  Analysis & Insights:
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  the longterm outlook remains positive,
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  The current selloff offers a buying opportunity for longterm investors,
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  Adobe's robust business model,
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  high operating margins,
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  and solid financial metrics make it a compelling choice for those looking at bluechip tech stocks,
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  Shortterm caution may persist,
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  but Adobe’s history of beating earnings expectations suggests resilience,
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  AppLovin is an exciting growth play,
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  Their AI integration and strategic acquisitions position them strongly within the tech sector,
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  The low PEG ratio indicates potential for further growth despite recent stock appreciation,
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  Trading Recommendations:
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  Adobe (ADBE): Recommendation: Buy Reasoning: The recent dip provides a compelling entry point for longterm investors,
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  Adobe's robust business model,
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  high operating margins,
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  and future revenue visibility make it a solid addition to a diversified portfolio,
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  despite nearterm volatility due to conservative guidance,
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  2,
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  AppLovin (APP): Recommendation: Buy for Growth Investors Reasoning: For highgrowthfocused investors,
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  AppLovin deserves a place in the portfolio,
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  Impressive earnings and revenue growth,
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  coupled with strategic advancements in AI and acquisitions,
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  suggest ongoing momentum,
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  Expect shortterm volatility,
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  but longterm potential looks promising given robust growth forecasts,
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  Before I sign off,
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  let's keep an eye on broader market trends and be prepared for fluctuations,
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  especially as we approach earnings seasons and get more economic data,
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  Adapting to these insights and aligning them with your risk tolerance can be key to navigating this dynamic financial landscape,
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  That's all for today's episode of Spy Trader,
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  I'm your host,
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  Money McJokes,
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  Thank you for tuning in,
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  Stay savvy,
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  stay invested,
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  and remember – it's a jungle out there,
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  but with the right knowledge,
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  you can swing through it with ease,
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  See you next time!