2024-02-22 18:44:08 ET
Summary
- Adobe Inc. stock has underperformed the broader market by around 20% since my last report.
- The planned acquisition of Figma has been abandoned, relieving investors of a potentially expensive deal.
- But investors might not be asking the right questions, namely, why did Adobe want to pay such a high valuation for Figma?
- Investors may be underestimating the long-term threats from generative AI and Figma.
Adobe Inc. ( ADBE ) was a big winner in 2023, as the company benefited from both a broader tech recovery as well as the rise of generative artificial intelligence, or AI. The company has sustained exceedingly resilient revenue growth and delivered typically impressive profit margins. With the company's planned acquisition of Figma now off the table , many investors may be relieved to see a potentially expensive deal sidelined....
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For further details see:
Adobe: Do Not Ignore Figma And The Long-Term Gen AI Threat