In this podcast, Motley Fool Chief Investment Officer Andy Cross and senior analyst Jason Moser discuss:

• Jurassic World Rebirth delivers for Comcast.
• CoreWeave finally gets it done for Core Scientific.
• Oracle makes a deal with the federal government.
• Two stocks to look at if the market pulls back: Samsara and Howmet Aerospace.

To catch full episodes of all The Motley Fool's free podcasts, check out our podcast center. When you're ready to invest, check out this top 10 list of stocks to buy.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »

A full transcript is below.

Should you invest $1,000 in Comcast right now?

Before you buy stock in Comcast, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Comcast wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

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Now, it’s worth noting Stock Advisor’s total average return is 1,058% — a market-crushing outperformance compared to 180% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of July 7, 2025

This podcast was recorded on July 07, 2025.

Andy Cross: Dinosaurs roar for Comcast while CoreWeave makes an acquisition. Motley Fool Money starts now. Welcome to Motley Fool Money. I'm Andy Cross, joined by Motley Fool's Senior Analyst and advisor Jason Moser. Jason, happy Monday.

Jason Moser: Happy Monday, AC. Good to see you.

Andy Cross: Good to see you. Thanks for being here. We got confirmation today that CoreWeave is buying another AI Data Center company, and Oracle is cutting cloud prices for Uncle Sam. We'll also talk about two companies we're keeping an eye on if the price is right. But, Jason, let's start with the summer movies, Universal's Jurassic World Rebirth reportedly brought in more than 300 million globally this weekend, giving a nice wind to Comcast, the parent owner of Universal. This continues that strong summer at the box office that included how to train your dragon also from Universal and Apple's F1. Jason, is this good news for long suffering Comcast shareholders like me?

Jason Moser: [laughs] It's not bad news. Most certainly it's not bad news. Now, Comcast content and experiences studio segment brought in $11 billion in revenue in 2024, along with about $1.4 billion in operating profits. This isn't something from the revenue side that is a tremendous needle mover, but maybe it's a needle mover to the extent that we would say the same thing for Disney. This is the content space that can be very lumpy some years are better than others. If you look at the same segment, the content and experience, the studio segment, we talked about $11 billion in revenue in 2024. That was $12.3 billion in 2022. It ebbs and flows. But this is terrific news. I'm amazed. The original Jurassic Park came out back in 1993. They have pulled a Disney to an extent and have really expanded and stretched out this IP library. I think that is a good sign for Comcast shareholders.

Andy Cross: Jason, 100%. I see this again, this Comcast stock has not done that well over the past couple of years. It now yields about 3.7%. Of course, we have the spin off, the spin out of the media properties called Versant later this year, where they're going to spin off CNBC and USA, MSNBC, the Golf Channel, and a few other properties. I think that's got a lot of investors interested in Comcast, at least for me, those of us who own it. But this is the seventh film franchise of the Jurassic franchise, and that franchise is worth about $6 billion. It is a Disney play, Jason, because they're using that in their IP. They're using the theme parks. I saw promotions all around the world, all around the cable properties for the Jurassic rebirth movie. They were showing older Jurassic movies on some of those cable properties this weekend. I think from that perspective, it does help build that franchise out, and it's going to be a very competitive summer. Disney itself has its fantastic four coming out this summer. We have the much anticipated Superman movie from Warner Brothers coming out this year, but I think it does help build out that franchise that has become more and more valuable to those universal theme parks, including the one that just opened up this year.

Jason Moser: No question. This also plays into that summer blockbuster. We always look to see what the summer blockbusters are going to be. I just think it's noteworthy these results, particularly given the tepid reviews that the movie's gotten. I haven't seen it, and I take criticisms with a grain of salt, but 51% on rotten tomatoes and a cinema score of B from the opening weekend audience. That's not lighting the world on fire from a critics perspective, but clearly the audience loved it.

Andy Cross: Also, Jason, interesting notes over the weekend that Netflix, with its 300 million subscribers, they said at the Anime Expo in Los Angeles this weekend that more than half its subscribers now watch Japanese anime. I found that interesting just because it continues to show the power of the Netflix globally as a brand, and one reason why they're along with YouTube, one of the most valuable media properties out there.

Jason Moser: We've always said they do such a good job with that data. Personally, I'm not an anime consumer, but I think this is a great example for investors, where it's not necessarily wise to extrapolate one personal taste into a potential idea, just because it's not something that you like or eat or watch, it doesn't mean there isn't an opportunity there, and that 50% number globally, really does tell us something impressive about Netflix's market position.

Andy Cross: 100%. When Motley Fool Money returns, CoreWeave goes shopping.

AI infrastructure company CoreWeave announced that it will buy Core Scientific for around $9 billion in an all stock deal. That's about $20 per share based on CoreWeave stock. Now, shares of Core Scientific Jason are down around 20% today to about 15, so the market's sensing something here.

Jason Moser: This is an arms race like we haven't seen in some time. Companies are just rushing to build out their AI capabilities, and this is just another sign of that. But I think it's really noteworthy that Core Scientific shares being down so much today. There can be a number of reasons why something like that might happen. Investors don't think that it will go through, perhaps another bidder comes in. But, AC, I wonder if this doesn't have something to do with the deal structure itself and what it's saying about the market's perspective on CoreWeave, because that nine billion number that's being bandied about, let's make sure we understand. That's just based on the July 3rd share price. Core Scientific shareholders are going to receive 0.1235 shares of CoreWeave for each share of Core Scientific that they hold. But as noted in the release, and this is important. The final value will be determined at the time of the transaction closed. That's not until later in Q4, so I don't know. Do you think this is like a glass half empty view on CoreWeave and whether they can hold their valuation? Because the stock has been on fire since it went public.

Andy Cross: It went public just this year, and the stock's done just fantastically well, and Core Scientific has done very well, although it has a little spotted history. It's one of those sparks back in 2021 that when it came public out there was about $4 billion, and it basically lost almost 100% of its value, had to declare bankruptcy, defile from the markets, came back to the public markets in January 2024. Actually, CoreWeave tried to buy them last year for about $6 per share. Now they're paying far more for that. It does give CoreWeave the vertical integration, Jason, that I think that they need to build out. They're going to add 9 or 10 AI data centers of Core Scientifics give them massive gigawatts of capacity. As CoreWeave is trying to build out its own AI data centers, it does need to continue to build out that capacity. CoreWeave is Core Scientific's largest tenet, so it makes sense from a vertical integration perspective. But I think the market is just saying with a share issuance, so soon after CoreWeave became public, there are some doubts about at what price they're going to have to get Core Scientific into the CoreWeave family.

Jason Moser: Exactly. I certainly understand the market's enthusiasm around CoreWeave. When you're selling yourself as the AI hyperscaler. There is something to that, and this is clearly a company that's playing a big role in the space. They just reported revenue growth, 420% in this most recently reported quarter. But again, and you're right, vertical integration, this is going to be something that really gives CoreWeave more power over its platform and to that power. This is a power play. Through this acquisition, CoreWeave is going to own approximately 1.3 gigawatts of gross power, along with the opportunity of one plus gigawatts of potential gross power available for expansion. A gigawatt is a lot of power, AC. That power is a medium sized city, and you think about the Hoover Dam. Hoover Dam, one of our biggest hydroelectric generators here in the country. That's responsible for about two gigawatts of capacity. You can see how this could really impact CoreWeave if it goes through.

Andy Cross: Prediction time, do you think it's going to go through? Do they have to lower the price, readjust the deal terms? You think, Jason?

Jason Moser: I think it's going to go through. I think that probably the market's enthusiasm is going to remain for Core. You think the stock will ebb and flow here a little bit. My suspicion is it'll go through. Probably not going to end up at that $9 billion valuation at the end of the day because that is pretty extreme for a company like Core Scientific. That's like 18 times full year revenue in 2024. We might see some change in the price there, but my suspicion is it'll go through.

Andy Cross: There's definitely some synergies there and some cost savings, but I think it'll go through, too, but I do think they'll have to readjust the terms.

Jason Moser: [laughs] Exactly.

Andy Cross: Next up on Motley Fool Money, Oracle gives Uncle Sam a deal. Let's move over to news that Oracle is cutting cloud service prices for the US government by as much as 75% as reported this weekend by the Wall Street Journal. Jason, who's a winner here? Is this an Oracle beneficiary, a US federal government beneficiary or a little bit of A, a little bit of B?

Jason Moser: I'm going to walk the fence here and say a little bit of A, a little bit of B. It does feel like both win somewhat here. This feels a bit like taking a page out of the book of Bezos. He was always known for driving down those prices in so many cases. He's got that quote, "Your margin is my opportunity." He's taking that Uber long-term view. AC, I think for federal agencies, they're under this mandate to modernize while also managing tighter budgets at the same time. So the old saying cash is king, I think, in this case, it seems maybe cost is king, and we're seeing other cloud providers follow the same lead, Salesforce has done the same thing in regard to Slack, Google, Adobe. This isn't anything necessarily new. But then I think for Oracle, these discounts can help lock in really multi year contracts. That offers more stability for their business model and revenue prediction. If they can extend those relationships, then you can start talking a bit about maybe exercising a little bit more pricing power down the road if they do a good job. I can see both parties benefiting from that.

Andy Cross: I thought this was a little bit more beneficiary for Oracle when I first started studying it. But then I think the GSA, the General Services Administration is starting to shake their big stick here to try to get some pricing out of some of these big players. It is interesting to me that this is for the licensees, not really for the subscription, and it goes through November. The pricing option goes through November of this year. It does give Oracle a foot in. It's really the first deal the GSA cut for government wide solutions, including lots of areas where Oracle and other cloud titans provide some of those services and compete very heavily. I think it's just more evidence of CFO Safra Catz, becoming more and more competitive, trying to push Oracle into markets. Clearly Oracle has had some nice beneficiaries here in the markets and in their business as the stock is gone really well. It's up 60% the past year or 40% year to date, Jason. It's north of a $600 billion company. Thirty five times earnings. That's almost two times its five year average. What do you think about Oracle, the stock going forward?

Jason Moser: I'm glad you brought that up. It does seem like a little bit of a richer valuation, but going back to Safra Catz, he's looking at fiscal 2026 targets here, cloud revenue growth projected to grow from 24% to over 40%. Then that IAAS, that infrastructure as a service. That growth there is projected to hit about 70%. Anytime you see valuations like that, you have to just step back and say, why is the market doing that? Where's the growth? I think that's where they're seeing some of that growth. Now they just have to deliver.

Andy Cross: I think so, too. I do, again, like this licensing play because as they continue to push more subscription, this does get into the core part of what Oracle has done for so long and done so well for so many years. I think it is a nice foothold for Oracle. I guarantee that GSA is going to be issuing lots of different pricing asks of lots more providers as they continue to manage their own footprint as they push toward to be a little bit more technological savvy at the federal government. Finally, today, Jason, stocks are down a little bit, but passed through all time highs last week. Let's end things with two stocks that we're keeping fresh on our watch list if the prices are right. What are you looking at?

Jason Moser: Everybody loves stock ideas, AC?

Andy Cross: Of course.

Jason Moser: One that I just continue to keep my eye on is a company called Samsara. Ticker is IOT. It's now a $22 billion company, and Samsara operates its Connected Operations Cloud, which is a software platform that connects all of the devices that a company has and its buildings, its equipment, its cards, and other facilities. The platform then establishes this massive network of data and information specific to that company. Now the company's still working its way to profitability. Technically, it's cash flow positive, but stock-based compensation more than eats that up, which isn't uncommon for a company at this stage of its life cycle. It's around 14 times forward sales projections today. Now, when I wrecked this company in the trend service back in the beginning of 2023, it was at 13 times. It's been a bit of a bumpy ride, and the stock has pulled back a little. But when you look at the fundamentals of this business, they just reported first quarter results that exceeded all targets that leadership set a quarter ago, revenue up 32% annualized recurring revenue up 31%. They have 2,638 customers with ARR over $100,000. That's up 35% from a year ago. It is a company that continues to grow and establish a fairly dominant position in its market is what it seems. It really does seem like this is becoming the top dog at its space. I think it's also a company that possesses a lot of those hidden gems traits.

Those principles that our CEO Tom Gardner loves, he's so fond of. You get reasonable, remarkable growth into expanding markets, check. Led and owned by true long-term believers in the company, check. This is a company that is led by co-founders Sanjit Biswas and John Bicket. They own almost 70% of the voting power in a relentless curiosity toward bold technical exploration. That is a double check for a company like this. If we ever see any material pullback in this one, I certainly would be very tempted to add it to my portfolio.

Andy Cross: Jason, do you have any thoughts on these cute ticker names, IOT? [laughs] Does that tend to scare you away from a company?

Jason Moser: Not really. I never would recommend a company on the ticker alone, but you just made me think of core scientific and its ticker cores. It's like the smoky and the bandit ticker. It's funny to see those sometimes.

Andy Cross: Jason, I'm looking at Howmet symbol HWM. It's formerly part of Alcoa. Its history is steeped into high precision metalworking, 90%. It provides 90% of all structural and rotating aero engine components for the aerospace, transportation, and energy markets. These are really super high end precision airfoils and forging, forge wheels and chassis for the commercial trucking and auto space. The stock has doubled over the past year, and it's up almost 50% since the Rule Breakers team over in Stock Advisor, we recommended it just this year. It has these really serious competitive advantages that we love to see. Its patents, manufacturing, the history behind it, its core clients. You don't really want to mess around with replacement parts for these kinds of really high precision manufactured items. It does have some opportunities in the energy space because it provides the blades for the engine turbines that power a lot of the energy that goes into supporting data centers. I do love this business.

It's just the stock has done so well, and while the Stock Advisor team, as well as our Rule Breakers team love buying into strength, I just want to see, I'm not going to criticize anybody for adding this great business to their portfolio. But for me, I'm just looking for a little bit of maybe a market breather before I start looking at Howmet symbol HWM just a wonderful business, $73 billion. It's not small, and it has a lot of room to grow in the aerospace market.

Jason Moser: Plenty of examples in my investing life where patience tends to pay off.

Andy Cross: 100%. [laughs] There you have those two high quality companies in Samsara and Howmet that we're watching. If the markets go on a little bit of a tailspin here in the dog days of summer, maybe they go added to our portfolio. That's a rap for us today here at Motley Fool Money. Jason Moser, thanks for joining me here.

Jason Moser: Thanks for having me.

Andy Cross: Here at the Motley Fool we love hearing your feedback, to be part of that feedback or to ask a question, email us at [email protected]. That's [email protected]. As always, people on the program may have interest in the stocks they talk about and the Motley Fool may have formal recommendations for or against. Don't buy or sell stocks based solely on what you hear. All personal finance content follows Motley Fool Editorial standards and is not approved by advertisers. Advertisements are sponsored content and provided for informational purposes only. To see our full advertising disclosure, please check out our show notes. For all of us here at Motley Fool Money, thanks for listening, and we'll see you tomorrow.

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Andy Cross has positions in Adobe, Alphabet, Apple, Comcast, Netflix, Salesforce, and Warner Bros. Discovery. Jason Moser has positions in Adobe and Alphabet. The Motley Fool has positions in and recommends Adobe, Alphabet, Apple, Netflix, Oracle, Salesforce, and Warner Bros. Discovery. The Motley Fool recommends Comcast, Howmet Aerospace, and Samsara. The Motley Fool has a disclosure policy.

Adobe (NASDAQ:ADBE) reported Q2 FY2025 results on June 12, 2025, posting record revenue of $5.87 billion, up 11% year over year, non-GAAP EPS of $5.06, up 13% year over year, and raising FY2025 revenue as well as GAAP and non-GAAP EPS targets. Management highlighted accelerated AI monetization and strong user growth, set against ongoing product innovation and successful market expansion across both Digital Media and Experience segments.

The following analysis distills distinct strategic, operational, and financial insights directly impacting the company’s long-term investment thesis.

AI Integration Drives Measurable ARR and User Growth

Artificial intelligence (AI)-influenced annual recurring revenue (ARR) is tracking in the billions, while AI-direct ARR from products such as Acrobat AI Assistant, Firefly, and GenStudio is on pace to surpass the initial $250 million FY2025 target. Monthly active users (MAUs) across Acrobat, Express, and related offerings exceeded 700 million, with Express capability adoption inside Acrobat scaled approximately 11x year over year, and generative AI features usage grew more than 3x year over year.

"While our AI-influenced ARR is already contributing billions of dollars, our AI book of business from AI products, such as Acrobat AI Assistant, Firefly app and services, and Gen Studio for performance marketing, is tracking ahead of the $250 million ending ARR target by the end of fiscal 2025."
— Shantanu Narayen, Chair and CEO

The successful commercialization and deep user engagement from AI-driven products indicate a durable competitive advantage in both monetization velocity and product differentiation, reinforcing Adobe's leadership as the creative industry migrates toward AI-centric workflows.

Commercial Content Safety as a Strategic Differentiator

Regulatory scrutiny of AI-generated content and rising industry litigation around copyright train models -- illustrated by lawsuits filed by Walt Disney and Comcast's NBCUniversal against AI image generator Midjourney -- have increased enterprise sensitivity to IP risk. Adobe underpins its Firefly models with commercially safe training data, including stock and other content it has access to, and compensates contributors, supporting widespread enterprise adoption and mitigating legal risk.

"... we have trained our Firefly models, as many of you know, on stock and other content that we have access to. We do have a contributor fund that pays out to those individuals. And as a result, we feel like we're in a very advantaged position when it comes to people choosing Model Health, especially in enterprises."
— David Wadhwani, President of Digital Media

This strategic focus on content provenance and transparent creator compensation enhances long-term enterprise adoption and positions Adobe as a safe harbor amid regulatory uncertainty, and reduces the risk of abrupt revenue headwinds from legal challenges.

Tiered Product Strategy Accelerates Monetization Across Customer Segments

Subscription revenue for the Business Professionals and Consumers group surged 15% year over year in Q2, while Creative Cloud Pro -- offering greater value at higher price points -- has already launched in North America, with global rollout underway. MAU growth for the combined Acrobat and Express funnel accelerated above 25% year over year, while Firefly app traffic grew over 30% quarter over quarter, and paid subscriptions nearly doubled.

"... we've been able to introduce the Creative Cloud Pro plan, which is a higher-priced plan, but has a lot more value integrated into the ecosystem of the desktop applications. But it also comes with the Firefly application as well. Then in the context of enterprises, we're seeing a huge growth of Firefly services and GenStudio for automation of that content."
— David Wadhwani, President of Digital Media

This granular "stratification" unlocks the ability to both upsell higher-value tiers and broaden market access, expanding the total addressable market while supporting double-digit top-line growth and margin durability for Adobe.

Looking Ahead

Management forecasts total revenue of $5.875 billion–$5.925 billion (GAAP) for Q3 FY2025, GAAP EPS of $4–$4.50, and non-GAAP EPS of $5.01–$5.20, with an adjusted operating margin of approximately 45.5%. Full-year FY2025 targets raised to $23.5 billion–$23.6 billion in total revenue, $17.45 billion–$17.5 billion Digital Media revenue, 12.1% Digital Media ending ARR growth, and $20.50–$20.70 non-GAAP EPS; AI-direct ARR set to exceed $250 million. Management reaffirmed Digital Experience subscription revenue guidance, and continued aggressive product innovation cadence across AI, mobile, and automation, ensuring robust near-term and structural long-term growth levers are in place.

Where to invest $1,000 right now

When our analyst team has a stock tip, it can pay to listen. After all, Stock Advisor’s total average return is 999%* — a market-crushing outperformance compared to 174% for the S&P 500.

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JesterAI is a Foolish AI, based on a variety of Large Language Models (LLMs) and proprietary Motley Fool systems. All articles published by JesterAI are reviewed by our editorial team, and The Motley Fool takes ultimate responsibility for the content of this article. JesterAI cannot own stocks and so it has no positions in any stocks mentioned. The Motley Fool has positions in and recommends Adobe and Walt Disney. The Motley Fool recommends Comcast. The Motley Fool has a disclosure policy.

"Dirt cheap" and artificial intelligence (AI) aren't typically mentioned in the same sentence. There's a preconceived notion that many of the AI stocks in the market are quite expensive, which is, for the most part, a fair assessment.

However, there are still plenty of dirt cheap stocks that look like screaming buys in the AI space. Two of them are Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) and Adobe (NASDAQ: ADBE), and each looks like an incredible buy right now.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »

Why are these two dirt cheap?

I consider both of these stocks cheap because they meet two criteria. First, both stocks are cheaper than the broader market, as measured by the S&P 500 (SNPINDEX: ^GSPC). The S&P 500 has a forward price-to-earnings (P/E) ratio of 22.1, and both stocks are currently cheaper than that mark.

GOOGL PE Ratio (Forward) data by YCharts. PE Ratio = price-to-earnings ratio.

Furthermore, both stocks have rarely been this cheap, which is another sign for investors that now may be an excellent time to scoop up shares.

My second factor for determining whether a stock is dirt cheap is its ability to grow earnings per share (EPS) faster than the market. If a stock is cheaper than the broader market, yet growing more slowly, there is a good reason why it's priced below the market. Both companies are projected to post strong earnings growth over the next two years, exceeding the S&P 500's usual 10% growth rate.

Company	2025 EPS Growth Projections	2026 EPS Growth Projections
Alphabet	19%	6%
Adobe	11%	12%

Data source: Yahoo! Finance. EPS = earnings per share.

However, I believe these analyst projections are flawed, as they don't account for both companies having massive stock buyback plans. With both companies having record-low stock prices, don't be surprised if they increase their share buyback amounts. A cheaper stock makes these buybacks more effective and can cause the share count to fall quickly, which boosts EPS.

Both stocks look cheap, yet they have growth that should make them premium to the market. So, why is the market valuing them in this way?

The market assumes both companies are victims of the AI trend

Both Alphabet and Adobe's primary businesses are at risk of being disrupted by AI. Alphabet's primary business is Google Search, and there has been no shortage of predictions about replacing traditional search with AI. However, Google has already introduced AI search overviews and released an AI search mode. Both options may bridge the gap and keep Alphabet in the leadership position. Furthermore, generative AI has been around for nearly three years, and Google Search's revenue still rose by 10% in the previous quarter. So, clearly, it isn't dead yet.

Adobe is in a similar boat. Its suite of graphic design products has become the industry standard and is used worldwide. However, investors are worried that generative AI image generation could make Adobe's software obsolete.

While this may produce some headwinds, Adobe has already launched its incredibly popular Firefly AI, which allows its users to generate images and easily modify existing designs. Furthermore, generative AI tools don't offer the same level of control that Adobe's software provides, and graphic designers aren't willing to give up full creative control to a randomly generated image.

While both companies will encounter some headwinds popping up from time to time as a result of generative AI, these are mostly headline-induced worries. The actual businesses are doing just fine. Their consistent execution, combined with a cheap stock price, gives me confidence in their long-term ability to provide market-beating returns, which is why I think these two are excellent buys now.

Should you invest $1,000 in Alphabet right now?

Before you buy stock in Alphabet, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Alphabet wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $651,049!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $828,224!*

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*Stock Advisor returns as of June 2, 2025

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Keithen Drury has positions in Adobe and Alphabet. The Motley Fool has positions in and recommends Adobe and Alphabet. The Motley Fool has a disclosure policy.

Adobe (NASDAQ: ADBE) and Meta Platforms (NASDAQ: META) are growing revenue while improving profitability.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »

*Stock prices used were the afternoon prices of May 25, 2025. The video was published on May 27, 2025.

Should you invest $1,000 in Meta Platforms right now?

Before you buy stock in Meta Platforms, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Meta Platforms wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $653,389!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $830,492!*

Now, it’s worth noting Stock Advisor’s total average return is 982% — a market-crushing outperformance compared to 171% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of May 19, 2025

Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Parkev Tatevosian, CFA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Adobe and Meta Platforms. The Motley Fool has a disclosure policy. Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.

This company has demonstrated solid revenue growth for a long time, and investors appreciate the reliability.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »

*Stock prices used were the afternoon prices of May 24, 2025. The video was published on May 26, 2025.

Should you invest $1,000 in Adobe right now?

Before you buy stock in Adobe, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Adobe wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $653,389!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $830,492!*

Now, it’s worth noting Stock Advisor’s total average return is 982% — a market-crushing outperformance compared to 171% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of May 19, 2025

Parkev Tatevosian, CFA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Adobe. The Motley Fool has a disclosure policy. Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.

The stock market is quietly staging a comeback following a rough start to 2025. While still down about 9% year to date as of this writing, the innovation-heavy Nasdaq Composite index has rallied by more than 16% from its recent low.

Signs that the Trump administration is willing to adjust some of the sweeping changes in trade policy and negotiate bilateral deals have helped de-escalate fears of a broader trade war. There are still plenty of uncertainties for investors to balance, but also a renewed sense that the big picture remains positive. With the first-quarter earnings season underway, early results from tech leaders are showcasing underlying sector resilience and the ongoing transformative impact of artificial intelligence (AI) as a major market theme.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »

Let's take a look at three AI stocks that could be poised to make a big bull run.

1. Adobe: An AI bargain

Despite solid growth and record profitability, shares of Adobe (NASDAQ: ADBE) are down about 38% from their 52-week high. The tech giant, recognized for its industry-leading creative media software like Photoshop and Premiere Pro, is capitalizing on strong demand for innovative AI and machine learning features integrated across its app ecosystem.

In the company's fiscal 2025 first quarter (for the period ended Feb. 28), revenue climbed by 10% year over year, alongside a 13% increase in adjusted earnings per share (EPS), with management forecasting further increases for 2025.

The market seems skeptical as to whether Adobe's early AI success will last, as one reason to explain its stock price weakness. Specialized AI companies like privately held Canva and OpenAI have introduced competing AI-powered text-to-image and video generation features, representing emerging competition to Adobe's industry dominance. However, the company's reputation for quality and its loyal customer base, attracted to its professional-grade capabilities, provide plenty of reasons to be optimistic.

Notably, the stock's valuation is compelling, trading at just 18 times its consensus 2025 EPS as a forward price-to-earnings (P/E) ratio, well below the company's five-year average forward price-to-earnings ratio. Adobe appears undervalued and well positioned to rebound if it continues to deliver on its financial targets.

ADBE PE Ratio (Forward) data by YCharts

2. Alphabet: Monster Q1 earnings

Shares of Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) surged following a better-than-expected first-quarter earnings report. Revenue grew by 12% year over year, which propelled a massive 49% increase in adjusted EPS for the period ended March 31.

The company's AI strategy is paying off, driven by Google Cloud Platform (GCP), which offers AI infrastructure and generative AI solutions that are gaining market traction at the enterprise level.

Alphabet's latest AI model, Gemini 2.5, is delivering breakthrough performance, translating directly into to higher advertising conversions across Google Search and YouTube. With over 270 million paid subscriptions for services like YouTube Premium and Google One, the company is diversifying its business and generating high-quality cash flow. Management's confidence in the outlook is reflected in a new $70 billion share repurchase authorization and a 5% increase in the quarterly dividend rate.

With the stock still down 22% from its 52-week high, Alphabet is a buy-the-dip opportunity poised to rally higher.

3. SoundHound AI: A hyper-growth story

SoundHound AI (NASDAQ: SOUN) is another tech stock that deserves a closer look following a deep stock price sell-off. Shares are down approximately 52% year to date as of April 25, an extreme correction that doesn't seem justified considering the company's phenomenal growth momentum.

The company is capturing strong demand for its voice-AI technology, representing a more natural and intuitive method for people to interact with AI-powered applications. In 2024, revenue reached $84.7 million, climbing 83% compared to 2023. For 2025, SoundHound expects revenue to nearly double, forecasting a range between $157 million and $177 million. The bullish case for the stock is that these trends are just getting started, with the company exploring a growing number of use cases, including hands-free in-vehicle AI car assistants, customer service chatbots, and voice-enabled ordering for restaurants.

With the potential to consolidate its position in an estimated $140 billion addressable market, SoundHound AI remains well positioned to reward shareholders over the long run.

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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Dan Victor has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Adobe and Alphabet. The Motley Fool has a disclosure policy.