Rumour Michael Burry is long ADBE. What are your thoughts?
u/toj27 ·
Reddit — r/ValueInvesting
· March 04, 2026 at 14:42
· ⬆ 20 pts
· 💬 86 comments
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Summary
The post discusses a rumor that Michael Burry has taken a long position in Adobe (ADBE), using it as a catalyst to evaluate the company as a potential value investment.
The author's thesis is that Adobe is currently undervalued due to market fears about AI disruption, despite its dominant market position, strong fundamentals (recurring revenue, high margins), and its own integration of AI into its products.
Quality assessment: This is speculation based on a news article about a rumor. The author provides a basic value thesis but lacks deep due diligence or original research.
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Saw some news that Michael Burry might be long Adobe.
Article: https://www.ibtimes.co.uk/michael-burry-adobe-stock-long-position-ai-bubble-1783071
ADBE is down about 40% this year, yet it’s trading around \~15x P/E and roughly \~11x P/FCF, which seems unusually cheap for a company that basically dominates the creative software stack.
Photoshop, Illustrator, Premiere, Acrobat. Entire industries rely on these tools. Huge recurring revenue and strong margins.
The market seems scared to touch software right now, especially with AI fears hanging over companies like Adobe. People worry generative tools could disrupt their moat.
But Adobe is also building AI directly into its ecosystem.
So what do you think?