Fabrinet and Fiverr International have been highlighted as Zacks Bull and Bear of the Day

For Immediate Release

Chicago, IL – February 26, 2026 – Zacks Equity Research shares Fabrinet FN as the Bull of the Day and Fiverr International Ltd. FVRR as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Adobe's ADBE, Microsoft MSFT and Alphabet GOOGL.

Here is a synopsis of all five stocks:

Bull of the Day:

Fabrinet is a Magnificent 7 crushing behind-the-scenes technology company that's playing an increasingly critical role in AI data centers and beyond.

FN stock broke out to all-time highs in the second half of February after posting another beat-and-raise quarter at the start of the month, helping it earn a Zacks Rank #1 (Strong Buy).

The contract electronics manufacturer builds complex, high-precision optical and electronic parts for big tech companies, including Nvidia.

Fabrinet stock has skyrocketed 190% over the past 12 months, part of a 2,000% rally over the past decade that more than quadrupled the Tech sector. FN is projected to post strong double-digit sales and earnings growth in 2026 and 2027 as the AI capex boom continues to heat up.

Investors looking to buy a high-flying, under-the-radar AI and growth tech stock right now and to start March should consider Fabrinet—Wall Street already loves it, and Nvidia and Amazon trust the optical manufacturing powerhouse.

Best Soaring AI Stock to Buy Now: Fabrinet

In its own words, Fabrinet is a "trusted manufacturing partner of the world's most demanding OEMs." FN works with technological leaders across aerospace, industrials, medical, life science, optical electronics, and beyond. The company also offers applied technologies such as precision electro-mechanical and electro-optical assembly, sensor manufacturing, and advanced packaging.

Simply put, Fabrinet is a critical high-tech manufacturing company that helps big tech companies, including Nvidia, by making small, precision parts used across AI data centers, telecom, and beyond.

Overall, Fabrinet is a best-in-class contract electronics manufacturer that does the high-skill factory work needed to create complex, cutting-edge tech for big companies such as Nvidia.

Fabrinet's behind-the-scenes offerings are becoming more critical by the day as AI hyperscalers and others race to build more data centers. For instance, some of FN's tech is used in data centers to help send information at lightning speeds, enabling AI programs to run smoothly.

Nvidia is one of Fabrinet's largest clients. The AI chip powerhouse reportedly accounted for roughly 28% of Fabrinet's FY25 sales. Networking equipment giant Cisco Systems and optical components standout Lumentum are two of its other most important clients.

On top of working with powerhouses such as Nvidia and Cisco, Fabrinet and Amazon entered an agreement last March that helps Fabrinet tap into Amazon's booming demand for fast, reliable optical networking gear to handle AI workloads.

The AI and Tech Manufacturer's Growth Outlook

FN grew its revenue by 19% in fiscal 2025 (period ended in June 2025), following a stretch of 13% average sales expansion in the previous six years. The tech company expanded its GAAP earnings by an average of 25% in the past five years.

Fabrinet topped our Q2 fiscal 2026 earnings estimates on February 2, providing upbeat guidance once again that helps it earn a Zack Rank #1 (Strong Buy). The recent upward revisions are part of a steady climb over the past several years.

FN is set to ride the AI arms race and benefit directly from the increased AI-focused capex in 2026.

Despite some AI bubble worries, the spending spree is only heating up. AI chip manufacturer Taiwan Semi was the first big tech firm to raise its 2026 capex guidance back in early January to between $52 billion and $56 billion, blowing away 2025's $40.9 billion.

AI hyperscalers are projected to spend roughly $530 billion in capex this year, up from around $400 billion in 2025 as Meta and many other Mag 7 companies ramp up their AI efforts. Nvidia on Wednesday was the latest, and perhaps the most important, tech company to confirm that the AI spending boom remains in full force.

Looking ahead, Fabrinet is expected to grow its adjusted earnings by 34% in FY26 and another 19% in FY27 to extend its strong run of earnings growth.

FN is projected to expand its revenue by 33% in FY26 and 19% next year to climb from $3.42 billion in FY25 to $5.39 billion—more than doubling its FY23 total.

Why This Picks-and-Shovels AI Stock Is a Must-Buy

Fabrinet stock has soared ~5,600% since its 2010 IPO, leaving Tech's 900% run in the dust. FN's 2,050% charge in the past 10 years helped it outclimb five of the Mag 7 stocks, trailing only Tesla and Nvidia.

The leading contract manufacturer has climbed 400% in the past three years and roughly 190% in the past 12 months.

FN's recent charge over the last week-plus helped it post multiple new all-time highs, surpassing its December peaks and breaking out of a trading range it had been stuck in for the last several months.

FN's proximity and direct connection with Nvidia, Amazon, and other big tech standouts will be beneficial as they lead the AI arms race.

Plus, Fabrinet is a well-run company with a stellar balance sheet and soaring shareholders' equity, which is something Wall Street craves. Speaking of, eight of the 10 brokerage recommendations Zacks has are "Strong Buys."

The stock might be a bit overheated in the short run. But market timing is no easy task. And Fabrinet plays a critical behind-the-scenes role in the AI revolution that is likely to be measured in decades.

Bear of the Day:

Fiverr International Ltd. saw its earnings estimates fall sharply after its Q4 FY25 earnings release on February 18.

FVRR's recent downward revisions, which land it a Zacks Rank #5 (Strong Sell), stem from weak 2026 guidance as the freelance talent hub for digital services extends its decline.

What's Going on with FVRR Stock?

Fiverr International exploded onto the scene as part of the wider gig-economy alongside the likes of Uber and others. The company operates a digital platform that aims to connect businesses to freelancers across areas like graphic design, writing, programming, video creation, digital marketing, and more.

Fiverr boasts that its portfolio helps people get work done from expert freelancers in over 750 skilled categories. The company grew rapidly, boosted by remote work.

But the rapid adoption of AI models has quickly disrupted FVRR's business, forcing it to adapt and expand.

FVRR now offers what it calls "best-in-class GenAI models and agents" on top of its human freelancers to help "businesses get mission-critical projects done fast and cost-effectively."

The company has delivered solid growth in recent years, with 2025 revenue up 10% to $430.9 million. FVRR has also grown its GAAP earnings over the last few years. Unfortunately, the stock has tanked as it faces massive disruptions from AI and a soaring post-covid stock surge that was simply not sustainable.

Fiverr's earnings estimate for 2026 has dropped 27% since its Q4 release on February 18, with its 2027 estimate 26% lower. The recent downward revisions land FVRR a Zacks Rank #5 (Strong Sell).

The freelance marketplace is attempting to continue its "expansion into complex, high-value projects" as part of an AI-focused transformation plan that it roll out after its restructuring in September.

"By moving toward an agentic economy, where AI helps navigate complexity, we are ensuring that we remain the bridge between businesses and the most exceptional human talent," CEO Micha Kaufman said in a press release.

"With our expansive global talent network, outcome-based hiring model, and depth of proprietary data, Fiverr has a unique right to win in this new age of AI. We have a multi-year plan to lead this transition, and I have never been more excited about the road ahead."

Some investors might want to keep a close eye on Fiverr. But it is likely best to stay at arm's length from the stock for the time being.

Additional content:

AI Efforts & Rich Partner Base: Adobe Stock Set for Recovery?

Adobe's expanding partner base and AI-related initiatives are expected to help the stock navigate a tricky business environment in which conventional SaaS software stocks have suffered from ongoing AI disruption. An innovative AI-infused portfolio is expected to help ADBE steer off stiff competition from the likes of Microsoft and Alphabet in the near term. Adobe shares have plunged 27.1% year to date.

Adobe boasts of a rich partner base that includes the likes of Amazon Web Services (AWS), Microsoft Azure and Copilot, Google Gemini, HUMAIN, OpenAI, among others. ADBE's Firefly, Express and Creative Cloud applications currently integrate models from partners, including Google, OpenAI, Black Forest Labs, Luma, Runway, Topaz Labs and Eleven Labs. Adobe is now expanding its partnership with WPP under which integrated solutions will be delivered for global brands to optimise media. These solutions, powered by AI agents, will orchestrate the planning, creation, production and activation of creative and media assets at a much faster pace.

Adobe's prospects are expected to benefit from continued adoption of its cloud-based platform, Acrobat and Express, supported by the integration of AI-powered capabilities such as Firefly and Acrobat AI Assistant. These tools are enabling faster content creation and document productivity, directly influencing subscription renewals and premium upgrades.

Adobe is infusing AI innovations into Acrobat, including new AI chat experiences to PDFs with simple, natural-language prompts. The company is combining Acrobat and Express to transform productivity and creativity together, making it fast and easy to generate presentations and podcasts from documents in minutes with AI. The new features are available in Acrobat Studio, which includes advanced PDF tools, AI Assistant and PDF Spaces from Acrobat and Express Premium capabilities in one AI-powered home for productivity.

Acrobat users are increasingly relying on Acrobat AI Assistant to consume content at a faster rate and are using Express to create richer PDFs, customized presentations and animated designs. ADBE is seeing increasing adoption of Express capabilities within Acrobat, driven by growing demand for creative functionality.

Adobe is gaining traction among individuals, small and medium businesses and enterprises, thanks to Acrobat AI Assistant, as well as Express premium plans. This is expected to drive top-line growth in fiscal 2026. The Zacks Consensus Estimate for revenues is currently pegged at $26.04 billion, suggesting 9.5% growth over fiscal 2025's reported figure.

Adobe Faces Tough Competition in the AI Domain

ADBE's AI business is minuscule compared with Microsoft and Alphabet. Microsoft's Intelligent Cloud revenues are benefiting from growth in Azure AI services and a rise in the AI Copilot business. Microsoft monetizes AI through existing customer relationships, reducing customer acquisition costs while expanding revenue per user. Microsoft's $625 billion remaining performance obligations and 15 million Microsoft 365 Copilot paid seats demonstrate robust enterprise demand and successful AI product adoption.

Alphabet's focus on leveraging AI to drive growth is a key catalyst. AI is infused heavily across its offerings, including Search and Google Cloud. AI Overviews and AI Mode are driving overall queries and commercial queries, thereby driving monetization opportunities. The launch of personal intelligence in AI Mode in search and the Gemini app bodes well for Alphabet's prospects.

ADBE's Share Price Performance, Valuation & Estimates

Adobe shares have lost 42.5% in a year, underperforming the broader Zacks Computer and Technology sector's return of 25.2%.

ADBE stock is trading at a discount, as suggested by a Value Score of B.

In terms of forward 12-month price/sales, Adobe shares are trading at a lower multiple of 3.94 compared with the broader sector's 6.38.

The Zacks Consensus Estimate for fiscal 2026 earnings is currently pegged at $23.47 per share, unchanged over the past 30 days, suggesting 12.1% growth from the figure reported in fiscal 2025.

Adobe currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

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Microsoft Corporation (MSFT): Free Stock Analysis Report

Adobe Inc. (ADBE): Free Stock Analysis Report

Fabrinet (FN): Free Stock Analysis Report

Alphabet Inc. (GOOGL): Free Stock Analysis Report

Fiverr International (FVRR): Free Stock Analysis Report

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