Adobe (NASDAQ: ADBE) is one of the largest and premier software-as-a-service (Saas) companies. It has a long record of solid execution, and smart acquisitions have made it a top stock to own, with Adobe outperforming the S&P 500 by about 30% over the past five years. While acquisitions aren't new for Adobe, $20 billion acquisitions are another matter.
While the U.S. has hit many of the benchmarks that signify an economic downturn, other metrics have defied the trend, leading many to debate whether the economy is actually in a recession. A key economic indicator released early Thursday seemed to tip the scales toward those arguing that it is in a recession. To be clear, there was very little in the way of company-specific news driving these technology stocks lower.
Although Snowflake (NYSE: SNOW) is one of the fastest-growing companies in the market, it's also unprofitable -- a bad trait to have in this turbulent economy. Unfortunately, rising interest rates are like kryptonite to high-growth, unprofitable stocks. Technological improvements in artificial intelligence and cloud computing have recently made it possible to use the vast volumes of information that companies collect to make critical decisions about the future -- a revolutionary development.