Why I Added To Adobe This Week

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.
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Introduction

I have held Adobe (NASDAQ: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


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.

Seeking Alpha’s Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.


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