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NASDAQ:ADBE

Adobe Systems (ADBE)

204.02
-14.78 (6.76%)
as of Jun 12, 2026, 8:00:00 pm Market Open.
398 watching
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Investor Insights
star iconJun 12, 2026, 12:00 am

This summary was created by AI, based on 52 opinions in the last 12 months.

Adobe Systems, symbol ADBE-Q, is facing significant uncertainty in the market due to concerns over the impact of artificial intelligence (AI) on its business model and its recent leadership change with the CEO stepping down. Many analysts acknowledge the company's strong fundamentals, including consistent revenue growth, effective share buybacks, and a solid balance sheet, but they express mixed opinions on the company's prospects going forward. Some believe that the current stock price is an attractive entry point, trading at low valuation multiples, while others are skeptical about its future growth in a rapidly evolving technological landscape dominated by AI. The sentiment is divided, with some suggesting that Adobe could thrive if it successfully integrates AI into its offerings, while others caution that competition and market dynamics might hinder its growth.

consensus icon
Consensus
Mixed
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Valuation
Undervalued
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Similar
SNOW,
WAIT
They report Thursday. They laid a big egg last quarter and the market hated them overpaying for a small company. Also are fears of a slowing growth wait. Wait to buy this undervalued company, because it will probably go lower.
WAIT
Exited to lower his tech weighting. Down about 55% from highs. Lower lows and lower highs. Technicals are signaling it's not time to jump in yet. Once we get into the early cycle, and interest rates calm down, there might be an opportunity for tech.
COMMENT
valuation? Everything in tech has corrected a lot, though the PE is still rich, but fallen a lot. They remain dominant in their space. Watch tech earnings closely this week
TOP PICK
Definitely his #1 pick. One-stop shop for design, creation, marketing, and web and mobile commerce. Nice runway ahead. Bought Figma, watch it, as the next big thing will be generative design AI. And Figma is the leader. No dividend. (Analysts’ price target is $369.00)
COMMENT
Its stock moves have been dramatic. It's an extraordinarily important company. The valuation isn't there yet, but it's getting a lot closer. As painful as its decline has been, it is a necessary evil.
PARTIAL BUY
The downward move in Adobe was overdone, extraordinary, though software companies are in a tough spot now. You want to be in places like this, at least picking them over.
WATCH
The price was too high before, but the price has pulled back quite a bit after an acquisition. Adobe paid a high multiple for that, so she is assessing that.
COMMENT
A favourite of his, but they spend $20 billion on a company that the street valued at $10 billion last year. Wouldn't it have been chepaer to replicate their product instead? Maybe Adobe needs this acquisition to jump-start their business. The company has an historic growth rate north of 20%, though lower lately. Does this company deserve to sell at less than 19x earnings for 2023? Will you lose money a year from now on this after shares have fallen 50% from its highs? Could the market have been that wrong when Adobe hit $699 before the US Fed hiked rates? Or is Adobe still too high?
BUY
Allan Tong’s Discover Picks Obviously, a lot is riding on Thursday's report. Looking at the previous report in June, the market still punished Adobe despite a good quarter. Adjusted profit rose 11% YOY on that quarter to $3.35 per share as sales increased 14% to about $4.39 billion. Adobe's Digital Media segment, including its cloud business, rang up sales of $3.2 billion, up 15%, and ended that quarter sitting on $5 billion cash. What's not to like? Well, guidance. What the street didn't like was the company lowering full-year earnings and sales guidance from full-year profit of $13.50/share and full-year sales of $17.65 billion compared to earlier guidance of $13.70/share and $17.9 billion. Read 2 Big Technology Stocks That Are Back for our full analysis.
BUY
It reports next week. Has long believed in this, but they face tough comps and currency adjustments, so they could lower their guidance. It's still the long-term leader in digital transformation, so happy to own it. Trades at 24x PE which is 20% lower than historical PE and this is prices into the stock.
WAIT
Poor trend. Bucketed with the growth at any price stocks. Great business over the long run, but stock became too expensive. Getting cheaper, but still 36x earnings. No debt. He'd want the trend to turn around before getting interested.
BUY
One-stop shop, a leader. Price target of $564, a very decent runway. Research firm has it as #1 in its magic quadrant in digital commerce. (Analysts’ price target is $564.00)
SELL
He sold. A leader in its category, but it's a growth stock when the market is turning sour on the leaders of the last cycle. Underweight tech, pivoting more to value. There will be a time to come back, but not today.
BUY
He's owned this for a long time. Their products are tools that will continue to be used. He's bullish the wider economy. He's added shares.
WATCH
A leader in creative digital marketing. Subscription-based products lead to predictable cash flows and 15% revenue growth. High gross margins around 80% in software, too. It trades at 32x earnings, far better than the former 50x a year ago. He owns Google and Meta instead, but Adobe's PE is getting attractive.
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