The Creative Giant Sketching Its Next Comeback

Author

Noah Zelvis
August 29, 2025

One of tech’s most iconic names is trading near multi-year lows while embedding AI into tools used by hundreds of millions daily.

With margins intact and valuations reset, the setup could reward investors who move before sentiment shifts.

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Hardware

Google Expands Hardware Protection With New Pixel Care+ Program

Google (NASDAQ: GOOGL) has launched Pixel Care+, a new device protection program designed to give hardware owners broader coverage and faster service.

The program replaces Google Preferred Care and Fi Device Protection in the U.S., with existing subscribers set to transition in the coming months.

Pixel Care+ offers unlimited claims for accidental damage, mechanical issues, and extended warranty coverage.

Subscribers also receive $0 screen and battery repairs, free post-warranty malfunction claims, priority support from Google experts, and access to genuine replacement parts.

To expedite service, the program offers next-day shipping for replacements and allows self-service claim filing through the Google Store or My Pixel app.

Pricing depends on the device, with coverage for a Pixel 10 costing $10 per month or $199 for two years.

Eligible hardware includes the Pixel 8 and newer smartphones, the Pixel Watch 2 and later models, the Pixel Tablet, and several Fitbit models, such as the Ace LTE, Versa 4, Sense 2, Charge 6, and Inspire 3.

Customers can add the plan within 60 days of purchasing a new device.

With Pixel Care+, Google is signaling a deeper push into hardware reliability and user trust, positioning its ecosystem to compete more directly with AppleCare and other premium device protection services.

Digital Payments

PayPal Faces Scrutiny After German Payment Outage Highlights Risks in Global Digital Transactions

PayPal (NASDAQ: PYPL) is working with German banks after a major outage disrupted online transactions worth billions of euros, sparking fresh debate over the reliability of global payment platforms.

Earlier this week, German banks reportedly halted nearly €10 billion ($11.7 billion) in transfers after PayPal’s security system failed to vet transactions for fraud properly.

Although the company confirmed that services have been restored and all legitimate merchant transactions will be honored, reports indicate that some German users are still facing issues.

The disruption temporarily froze one of the country’s most popular digital payment methods, raising concerns about systemic dependence on U.S.-based providers for Europe’s e-commerce backbone.

PayPal has assured customers that it is coordinating closely with its banking partners to reconcile accounts; however, the incident has already triggered discussions in Germany and across the EU about the need for more resilient and diversified payment infrastructure.

With regulators exploring alternatives to PayPal and calls for stronger domestic systems, the episode highlights how a single disruption can ripple across an entire financial ecosystem.

For PayPal, the event highlights both its global reach and the increasing pressure to ensure uninterrupted reliability as digital payments become increasingly critical to commerce.

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Cloud Computing

Amazon Web Services Extends Volkswagen Deal to Drive AI and Cloud-Powered Manufacturing

Amazon (NASDAQ: AMZN) has extended its partnership with Volkswagen for an additional five years, further strengthening the role of Amazon Web Services (AWS) in the automaker’s push toward more intelligent, more efficient manufacturing.

The collaboration, first launched in 2019, has enabled Volkswagen to build its Digital Production Platform (DPP), which directly links its factories to AWS cloud systems.

Currently active in 43 plants across Europe, North America, and South America, the DPP allows real-time monitoring of production lines, predictive maintenance of equipment, and optimized supply chain management.

By scaling AI and cloud integration across Volkswagen’s 114 global production sites, the companies aim to streamline complex assembly processes, reduce downtime, and share innovations quickly between facilities.

The expansion is also designed to generate tens of millions of euros in cost savings over the medium term by cutting waste and improving reliability.

Beyond efficiency gains, the cloud-based system is expected to accelerate Volkswagen’s transition toward digital and electric vehicle production.

For Amazon, the deal highlights how AWS is becoming increasingly integrated into industrial operations, positioning its cloud and AI tools as essential infrastructure for the future of global manufacturing.

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Recent Tech Movers

Dell Technologies (NYSE: DELL)
Dell reported record Q2 revenue of $29.8 billion, up 19% year-over-year, as AI server shipments surged.

Its $8.2 billion in AI-optimized servers shipped during the quarter already outpaces last year’s full total, with backlog still above $11 billion.

Dell also became the first to ship Nvidia’s GB300 NVL72 to CoreWeave, underscoring leadership in cutting-edge AI infrastructure.

Guidance was raised for FY26, with AI server sales now expected to hit $20 billion.

While consumer PCs remain soft, Dell’s pivot to enterprise AI infrastructure is turning it into one of the clearest hardware beneficiaries of the AI boom.

Broadcom (NASDAQ: AVGO)
Broadcom is building momentum with new VMware Cloud Foundation upgrades and fresh collaborations in AI infrastructure.

Partnerships with Nvidia, Canonical, and even Walmart highlight its growing role in virtualization and enterprise tech.

The company has also repaid $30 billion in debt, strengthening its balance sheet after last year’s VMware deal.

Shares are up 33% YTD, but analysts warn upside may be capped near-term with the stock trading close to consensus targets.

Still, Broadcom’s subscription push and AI integrations suggest longer-term earnings power remains underappreciated.

Snowflake (NYSE: SNOW)
Snowflake delivered a “beat-and-raise” quarter, with revenue up 31% year-over-year to $1.14 billion and EPS nearly doubling.

Net retention remains strong at 125%, and RPO climbed 33%, showing continued stickiness with large enterprise clients.

AI-driven demand for cross-cloud data services is fueling momentum, as businesses lean on Snowflake’s data lake tools to deploy generative AI at scale.

Shares have surged more than 50% this year, and analysts see room for another breakout with price targets as high as $285.

Insider selling is a modest overhang, but institutional ownership above 65% shows strong support.

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The Creative Giant Sketching Its Next Comeback

Adobe (NASDAQ: ADBE) has tumbled nearly 20% in 2025, slipping from last year’s highs above $580 to trade near $356.

Yet beneath the selloff, the fundamentals tell a different story: 30% net margins, double-digit revenue growth, and new AI features embedded directly into the workflows of hundreds of millions of users.

At the center of the bull case is product stickiness. Acrobat and Creative Cloud aren’t being reinvented so much as they’re being upgraded.

The launch of Acrobat Studio and Adobe Firefly integrates generative AI into tasks users already perform daily, like editing PDFs or creating marketing visuals.

With over 400 million global PDF interactions each day, even small improvements can drive higher retention and ARPU.

Valuation has also reset. Adobe now trades at just 15x forward earnings, a steep discount to peers like Salesforce and ServiceNow, which command 25–30x despite thinner margins.

That reset has flipped the risk-reward, with consensus price targets clustered around $480, implying more than 30% upside from current levels.

Competition is real. Figma’s public debut, alongside fast-moving players like Canva, has pressured sentiment.

But Adobe’s scale and institutional footprint give it a cushion: $6.9 billion in annual profit, $9.6 billion in operating cash flow, and 86% institutional ownership.

Wall Street still views it as the creative software backbone for enterprise clients.

The company has consistently beaten earnings expectations, most recently delivering EPS of $5.06 versus $4.97 consensus.

Guidance for August points to 11% earnings growth and 9% revenue growth year-over-year. If management delivers, Adobe could be set for a narrative shift as investors rediscover its AI moat.

For now, Adobe looks less like a fading giant and more like a creative heavyweight preparing its next chapter.

If the market begins to price in its AI upgrades and reliable execution, today’s discount may not last long.

Everything Else

  • 🚗 A new survey shows Tesla’s FSD feature is turning away more U.S. buyers than it attracts, raising questions about adoption.

  • 📈 Nvidia’s Jensen Huang said there is a “real possibility” the Blackwell chip could return to China with U.S. approval, a key test for AI exports.

  • 💼 A Stanford study found generative AI is reshaping the U.S. job market, hitting entry-level workers hardest while boosting productivity elsewhere.

  • 🏭 Intel said it received a U.S. grant, though officials clarified the deal is still under negotiation, leaving details uncertain.

  • 📺 NBCUniversal and Amazon struck a deal to bring Peacock to Prime Video Channels, expanding distribution of NBCU’s streaming service.

That's our coverage for today; thanks for reading! Reply to this email with feedback or any tech stocks you want me to check out.

Best Regards,
—Noah Zelvis
Tech Stock Insider