Friday, November 03, 2023
A few months ago, I gave you an important heads-up:
The Beatles were getting back together.
This was remarkable news, especially considering half the group is no longer alive. Yet through the power of Artificial Intelligence, this legendary rock group was getting ready to produce one last tune.
I also introduced you to a unique way to potentially profit from this upcoming track...
And if you’d followed my advice, you’d be sitting on positive gains while the broader market has declined by more than 6%.
Today, I’m re-visiting this topic. And I’m doubling down on this investment opportunity...
Because I’m convinced there are more profits to be made.
For those who missed my last piece on the subject, let me quickly get you up to speed.
Earlier this year, singer Paul McCartney told the BBC that, with the help of AI, he was going to create one “last Beatles record,” this one coming some 54 years after the release of the group’s iconic hit album, “Abbey Road.”
Essentially, Hollywood director Peter Jackson was able to isolate the voice of former Beatles singer John Lennon from an old demo tape using AI. And that recording was going to be incorporated into McCartney’s upcoming track, “Now And Then.”
As a longtime Beatles fan, I was pumped. Then yesterday (fitting), the track was officially released.
Clocking in at around four minutes, Now and Then features McCartney, Lennon, Ringo Starr on the drums, and the late George Harrison, who provides backup vocals.
Additionally, AI-enhanced “de-mixing” has enhanced more songs in the Beatles catalog. The band’s Apple Corps record label said that on November 10, it will release re-tooled and expanded stereo editions of two famous compilations known as the “Red” and “Blue” albums originally released in the 1970s.
For Baby Boomers like myself, this will be quite a blast from the past. Of course, there’s more than nostalgia at work here...
As mentioned, the creation of this new track wouldn’t be possible without AI. And it’s the latest example of how this technology is seeping into our everyday lives.
According to Fortune Business Insights, AI will be a $2 trillion industry by the end of the decade. But for our purposes, let’s focus on the technology’s impact on the arts and entertainment market.
You see, not only can AI re-create the voice of a deceased rock and roll legend, but it can also influence the creation of movies, books, and other music.
In fact, there’s a profitable company that dominates this part of content creation, specifically as it relates to art, photography, design, and even desktop publishing.
I’m referring to Adobe (Nasdaq: ADBE).
Adobe is a computer-software company that serves as a platform for creating, editing, and managing digital content.
As a former musician, I’ve personally had artwork designed for CDs and had photographs professionally edited and color-corrected, all using Adobe’s tools...
And as a former journalist, I’m intimately familiar with how important this company’s software is when it comes to layout and publishing duties.
But Adobe is a great play on AI. And much of that has to do with the fact that the company rejuvenated itself by making a strategic move to the cloud. Let me explain...
Not long ago, Adobe sold each tool separately, releasing regular paid-for updates.
But in what amounted to its own creative spark, the company began moving to a digital rental model. Users had to pay an ongoing monthly fee to use its platforms in return for continuous updates and support.
This move paid off handsomely. And it enabled Adobe to position itself at the forefront of technological development.
Then last March, the company announced the addition of generative AI — this is AI used to create text, images, and other media — to its platform...
Enabling users to quickly generate images and text and automate workflows by telling the software what they need.
The addition of AI sent Adobe’s stock soaring, as well as most of its bottom-line figures. Per-share profits, for example, grew by 20% in the most recent quarter.
I recommended Adobe to my Pro readers back in early July. And since then, the company’s stock is up more than 3%.
At first blush, that may not sound impressive. But when you consider that the overall market is down more than 6% during that same stretch, Adobe’s returns flash their appeal.
Don’t worry if you missed out on those gains, though. I still view Adobe as a long-term winner, especially as it delves further into the potential of AI.
That means you’ve still got time to get in on this company. So grab a few shares, fire up the latest Beatles track, and enjoy.
Cheers and Good Investing,
Chief Investment Officer
Trend Trader Daily