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Investment Thesis
The last time I wrote about Adobe Inc (NASDAQ:ADBE), back in March 2025, I analyzed the company’s first quarter results and examined the progress made by the company towards monetizing its AI offerings. I had a
Adobe: Investors' Impatience Gives Me An Opportunity To Double Down
Summary
- Adobe delivered another strong quarter, beating revenue and EPS estimates, and raised full-year guidance, signaling continued operational strength.
- AI monetization hasn't reached an inflection point, but progress is clear—Firefly integration and ARR growth show Adobe is moving in the right direction.
- Valuation remains attractive: Adobe trades well below historical multiples, and my revised price target of $652 implies significant upside from current levels.
- Despite broken momentum, I maintain a BUY rating, recommending dollar cost averaging as AI monetization and third-party integrations gain traction.
An independent investor in the Indian and US equity markets with a CFA Charter and a PhD in Finance from University of Durham, U.K. I hold an Honorary Associate Professor in Finance and Corporate Governance title at Brunel University London. I have a YouTube and a Podcast channel, titled The Stock Doctor,' where I discuss my views on the US and Indian markets every week. In addition, I actively undertake quantitative research in the areas of US equities, Behavioural Finance, Corporate Governance, Activist Hedge Funds, Cryptocurrencies and M&A , and have published in top-ranked peer-reviewed journals.
Analyst’s Disclosure:I/we have a beneficial long position in the shares of ADBE either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
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