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Adobe Systems (ADBE) has been facing a turbulent year, with a notable -15% decline and concerns about the impact of AI on its core products. While many analysts find the company appealing due to its established market position and solid fundamentals, they remain wary of its slower-than-expected monetization of AI capabilities and increased competition. The stock is deemed attractive by several experts, especially given its relatively cheap valuation compared to tech peers and the backing of buybacks. However, guidance has often been conservative, leading to volatility in share prices, which reflect both optimism about its innovative products and anxiety over potential disruptions. The consensus seems to be that patience is needed, with a careful wait-and-see approach regarded as prudent.
The stock has been an absolute disaster due to one reason: Adobe products face serious competition. They beat quarter after quarter (expectations are not lowered ahead of time, either). The competition is not as bad as people expect. Adobe is ridiculously cheap and unfairly sold given its growth rate, EBITDA and free cash flow. Hold and wait it out as they buy back shares.
He will continue to hold -it is at an attractive valuation and growing its top line by 10% and trades at 20X earnings. It is the industry Goliath in creative space. Analysts wonder about upstarts taking away business and are questioning why they aren't monetizing AI more substantially. However it isn't communicating this and can't separate it out in the features that are included in its products for which it could charge higher prices.
It lowered its revenue guidance for the year by 1 1/2% but the stock fell by over 20% which was an over-reaction. We should see more progress with opportunities in the enterprise market and Adobe rolling out an express product. The CEO bought $1 million in stock recently.
Buy 33 Hold 12 Sell 2
Their December results beat, but they lowered 2025 guidance by 1.5%. Shares fell 20%, an overreaction. Investors are worried about Adobe's pace of AI progress, but things should improve this year as they create more optimal pricing, including affordable rates for poorer customers. Their express product will compete with Canva. Meanwhile, they're targeting the enterprise market with GenStudio, an AI factory for advertisers. Note: the CEO of Eli Lilly recently bought $1 million of Adobe shares, as he sits on the board.
(Analysts’ price target is $576.85)Likes it. Bit of a Rodney Dangerfield "no respect" complex. Concern that others will eat its AI lunch. Bit pricey at 18.5x for 11.4% EPS growth. Need to own a name like this in the tech space when price reaches these levels. Beat on Q3, guidance for Q4 a bit shy. Earnings are coming up pretty soon. Firefly generative AI showing momentum.
He'd face the fear and buy at these levels.
Adobe Systems is a American stock, trading under the symbol ADBE-Q on the NASDAQ (ADBE). It is usually referred to as NASDAQ:ADBE or ADBE-Q
In the last year, 36 stock analysts published opinions about ADBE-Q. 12 analysts recommended to BUY the stock. 12 analysts recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for Adobe Systems.
Adobe Systems was recommended as a Top Pick by on . Read the latest stock experts ratings for Adobe Systems.
Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.
36 stock analysts on Stockchase covered Adobe Systems In the last year. It is a trending stock that is worth watching.
On 2025-04-23, Adobe Systems (ADBE-Q) stock closed at a price of $351.96.
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.