Columbia Threadneedle Investments, an investment management company released its “Columbia Threadneedle Global Technology Growth Strategy” fourth quarter 2024 investor letter. A copy of the letter can be downloaded here. The U.S. presidential election in Q4 2024 boosted U.S. equity markets, resulting in a strong year and overall positive year for global equities. The S&P 500 Index returned 2.41% during the quarter, and the index returned 25.02% for 2024. In the quarter, the fund returned 6.14% compared to the S&P Global 1200 Information Technology Index-net’s 3.72% return. Security selection drove the fund’s performance relative to the benchmark. In addition, you can check the fund’s top 5 holdings for its best picks for 2024.
In its fourth quarter 2024 investor letter, Columbia Threadneedle Global Technology Growth Strategy emphasized stocks such as Adobe Inc. (NASDAQ:ADBE). Adobe Inc. (NASDAQ:ADBE) is a technology company that operates through Digital Media, Digital Experience, and Publishing and Advertising. The one-month return of Adobe Inc. (NASDAQ:ADBE) was -3.55%, and its shares lost 22.37% of their value over the last 52 weeks. On March 10, 2025, Adobe Inc. (NASDAQ:ADBE) stock closed at $435.08 per share with a market capitalization of $189.215 billion.
Columbia Threadneedle Global Technology Growth Strategy stated the following regarding Adobe Inc. (NASDAQ:ADBE) in its Q4 2024 investor letter:
“Against a backdrop of an increased competitive environment, shares of Adobe Inc. (NASDAQ:ADBE) sputtered after the company reported strong quarterly results but provided a growth outlook that underwhelmed investor expectations. The software giant did outline an increased total addressable market opportunity, now expected at over $200 billion, from the prior $150 billion. However, the market is demanding more evidence that Adobe retains its competitive position against AI upstarts such as OpenAI or technology giants such as Google, which released their own versions of generative AI models (Sora and Veo/ Imogen, respectively) that pose a threat to Adobe’s Firefly generative AI model.”
A team of engineers and scientists collaborating at a workstation surrounded by their applications and solutions.
Adobe Inc. (NASDAQ:ADBE) is in 13th position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 117 hedge fund portfolios held Adobe Inc. (NASDAQ:ADBE) at the end of the fourth quarter compared to 123 in the third quarter. While we acknowledge the potential of Adobe Inc. (NASDAQ:ADBE) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
