2024-06-04 11:05:50 ET
Summary
- Adobe's stock has recently been weak on fears of how the benefits of AI can accrue to software businesses in general.
- Many believe AI will change the competitive landscape for the company, but I think otherwise. I share my views in this article.
- Even after accounting for SBC, I believe Adobe is currently trading at an attractive valuation. I go over the numbers.
Introduction
I have held Adobe (ADBE) for more than 2 years in my portfolio and I must admit I have had a love/hate relationship with the company. I bought my first Adobe shares before the company announced its intention to acquire Figma . Unsurprisingly, this acquisition brought understandable doubts around its moat, some of which I discussed in my article ' Why Adobe Is Buying Figma for $20 Billion. ' The takeaway for many was that Adobe was making this acquisition on disruption fears. The price tag surely made it seem like there was something more than a financial motive behind the acquisition. Uncertainty is one thing financials markets dislike, so Adobe's stock fell significantly on this news....
Read the full article on Seeking Alpha
For further details see:
Why I Added To Adobe This Week