The potential for generative AI to accelerate revenue amongst my fav stocks $META $GOOG $AMZN $MSFT $PLTR $HUBS reminds me of last tech paradigm shift that accelerated revenue for tech co's

Read on to learn how $ADBE rode to the cloud wave to go from negative growth to premium revenue growth (20%+) and 20X stock price appreciation...

Adobe and its successful transition from a traditional, perpetual software license model to SaaS subscription model in 2012 is striking example of how growth acceleration can benefit investors massively off two powerful catalysts – revenue growth and multiple expansion (P/S, P/E).

Facing sub 10% revenue growth in 2011 and an emerging new

paradigm for software delivery, Adobe was facing the classic innovators dilemma.

Pivot to SaaS and cannibalize its traditional licensing business significantly

in the short term or stick with the status quo and face a likely long, drawn-out

death. In November 2011 the company made its decision to pivot its business to

a SaaS model public by announcing its intentions to Wall Street and by the next

year their new SaaS, subscription service Creative Cloud was live. There was

some pain in the short term, 30,000 customers signed a petition on Change.org

asking Adobe to abandon the SaaS transition, and revenue decreased through 2013

and early 2014. However, the transformation began having the expected effects –

stabilizing revenue by shifting from one-time purchases to recurring revenue, increase

lifetime value of customer, expanding the base to include more casual customers

who could justify a monthly subscription, reducing piracy and expanding into

new geographic markets.

Revenue surged, going from quarterly declines to 20%+ quarterly growth in under two years. Adobe’s premium revenue growth (20%+) would sustain over the next six years. Investors took note, re-rating the stock from a Price to

Sales ratio of 3 to 21 by the end of its cloud fueled premium growth phase. Investors

along for the ride saw a near 20X increase in their bet on this transformation

over its ten-year lifespan.

Is history about to repeat itself with generative AI?