Joe Terranova Adobe Systems ADBE-Q SELL Jun 16, 2025

Not the type of company that would suffer from anti-American sentiment. At first, AI enhanced its product abilities; but then this morphed into perhaps products would become obsolete. No reason to get in.

Trading ~17x forward PE with 14% growth rate, so not a bad valuation compared to other tech names. Tepid guidance brought stock down. Below 200-week MA, which is moving lower as well, not great signs. 

She just sold it. It's been undervalued and dominates its space. But trends are slowing and she doesn't know how long the company will prove itself in this space in regards to AI.

Thought it was well positioned to monetize AI and deliver to end user. Didn't execute to the extent that analysts thought it would. Increased competition in the space. Struggling to maintain market share. Still owns, disappointing.

Still growing topline and bottom line at double digits. Spewing lots of free cash, buying back stock, great balance sheet. Worry is about how will AI affect its business? No evidence yet that it's impacting any of the company's results. Market's not respecting the fundamentals at the moment, maybe rightly so.

It reports Thursday. It could break its downtrend. He wishes the competition wasn't so fierce, and it's not letting up. An amazing company helping small companies. Is worth buying at 20x earnings. A good report, and this flies.

Shares are down today after reporting. The street is challenging their ability to monetize AI. They continue to deliver every time they report, but the stock does not perform well. But he will continue to be patient, because this is a stock to own.

She got sick of holding this, because they have trouble with Photoshop--now people can use the tools found in PS elsewhere. She sold before the quarter. Also with Meta, clients can create their own ads using Meta's tools. Adobe hasn't moved fast enough to develop such tools.

He bought more. They beat top and bottom lines, and raised guidance. He's a value investor. Sure, the share price has been terrible, but their earnings estimates are starting to rise and they're buying back share to reduce the share count 5% in the past year. They are meeting the competitive threat through their beats and guidance. They outperform consistently. Eventually, the share price will rise.