NASDAQ:ADBE

Adobe Systems (ADBE)

219.72
+8.74 (4.14%)
as of Jul 2, 2026, 8:00:00 pm Market Open.
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Investor Insights
star iconJul 2, 2026, 12:00 am

This summary was created by AI, based on 48 opinions in the last 12 months.

Adobe Systems (ADBE-Q) is currently facing significant challenges amidst growing concerns surrounding artificial intelligence (AI) and its impact on the software industry. A widespread sentiment among experts suggests that the departure of key executives, including the CEO, has negatively affected investor confidence. The stock has experienced substantial volatility, with reports of a recent earnings miss contributing to its downward trend. Despite these concerns, many analysts acknowledge Adobe's solid financials, including its continued revenue growth and share buybacks. While some believe in the long-term viability of Adobe, especially with its ongoing integration of AI into products, others caution against potential disruption from rising low-cost alternatives.

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Consensus
Mixed
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Valuation
Undervalued
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Similar
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BUY ON WEAKNESS
Believes company is high quality/predictable business. Current share price too high (~42x P/E). Wait for ~20x P/E to buy.
HOLD
In separately managed accounts, not in his fund. Down 35% in last 100 days. Poster child for one-stop services. Recent purchase has made it a key e-commerce SaaS vendor. (Analysts’ price target is $650.00)
COMMENT
Great company, but market's shifted away from growth. 12x forward price to sales, not cheap. Good growth metrics. Owning it depends on the tech weighting in your portfolio.
DON'T BUY
Got expensive, 20x book value. FMV is 51% lower than current price. Eventually, FMV is a very powerful attractor to the stock price. Not good value. Company won't disappear, but overpriced. Sees it going as low as $268.
COMMENT
Comparison question from caller. Owns Microsoft but not Adobe. Prefers Microsoft since it has pulled back and has better exposure to the cloud. Its cash flow allows for for more growth - the company re-oriented to growth 9 or 10 years ago. It put up great numbers in the last quarter. Trades at a premium but has earned it.
BUY ON WEAKNESS
You must buy when markets are this ugly, like this morning. He buys the ugliest. In this case, Adobe. Today, this fell below $500, but finished actually higher. Adobe at $680 a few months ago is very different from Adobe $500. This fell too far from historical trading. It's a good stock and there's no evidence that the company has deteriorated.
DON'T BUY
Great company, good times ahead. Stretched valuation, so your potential return might be in jeopardy. An investment now worries him, especially in this time of rising interest rates. High growth stocks tend to be negatively impacted, as the discount rate goes up.
PARTIAL SELL
It's done well, but somewhere along the line you're going to have to take some profits. Especially in high tech, and a specialty, it's overvalued. Model price of $278, 50% downside. Scale back. No value here for him.
BUY ON WEAKNESS
Digital content will be kind. Buy on a Q1 pullback to add to your position. A favourite for 2022.
PARTIAL BUY
A great opportunity here. 12-month price target of $698. Pretty significant pullback. One-stop shop. Fair bit of competition. Leader, visionary in the space. Pick it up in thirds here at $565, 535, and 510, with a stop at $500.
WAIT
It remains the standard product and people simply have to buy their product. The entire tech sector has taken a step back. He is not ready to step in just yet as higher interest rates are going to impact higher PE stocks like this one. Be patient.
PARTIAL BUY
It reports Thursday. A solid tech name you can buy right now. But don't own too many high-PE tech stocks, because they act anemically during Fed tightening.
BUY ON WEAKNESS
Optimal position would be around 3%. Moves around, a trading stock. 12-month price target of $702. Three most important reasons to own are projections of 24% EPS growth, Y/Y cashflow growth is just shy of 30%, and current year earnings have been revised upwards. Wait to get half just under $600, and another half around 560.
BUY
Allan Tong’s Discover Picks If you’re long term, then pick the Adobe Stock as it trades below $600. The fundamentals remain not only sound, but strong. Adobe’s business is software by subscription and the cloud, and these will continue to steadily grow. The street agrees with 17 buys, three holds and a $721.83 price target over 25% higher than current shares. Earnings, cash flow, gross/operating/profit margins, ROE and ROI easily beat the sector. ROI, for example, stands at 31.36%, three times more than its collective peers. Though lower than those competitors, Adobe’s PE of 47.7x may give some investors pause. However, this can be forgiven based on the company’s enduring growth. Read Barbell investing: Adobe, BlackRock, Magna for our full analysis.
BUY ON WEAKNESS
Yesterday, the CEO uttered "seasonality" to warn of a soft forecast, even though their quarter was robust. Shares dropped 3% today, undeserved. This is a periodic hiccup. This swoon will last 48 hours. Definitely buy into this weakness. He really likes Adobe.
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