Added to YB: 2026-05-21
Pitch date: 2026-05-19
ADBE [neutral]
Adobe Inc.
-4.95%
current return
Author Info
No bio for this author
Company Info
Adobe Inc. operates as a technology company worldwide. The Digital Media segment offers products and services that enable individuals, teams, and enterprises to create, publish, and promote content.
Market Cap
N/A
Pitch Price
$250.28
Price Target
676.00 (+184%)
Dividend
N/A
EV/EBITDA
10.29
P/E
N/A
EV/Sales
N/A
Sector
Software
Category
value
Adobe: The Stock Is Cheap, But the Business Is Changing
ADBE (overview): Down 70% from $328B peak to ~$100B on AI disruption fears. FY25: $23.8B rev (+11%), $9.85B FCF, 95% gross margin in Digital Media. Firefly ARR >$250M (tripled YoY), freemium MAU +50%, but traditional Stock biz declining faster than expected as AI substitutes content. Trading ~10x FCF vs historical premium, near no-growth case. Bull: AI expands addressable market via easier creation, enterprise governance moat intact. Bear: pricing power erodes, costs rise, freemium cannibalizes paid. Valuation: $201-$676/share across scenarios.
Read full article (15 min)