ADBE has a forward P/E of 9.5, record revenues and income, and is executing aggressive share buybacks at prices comparable to 2018. The market is pricing the stock for severe decline due to anti-SaaS and AI competition narratives, creating a disconnect between price and strong financial reality, similar to Facebook's historical low valuation. The risk of loss at current prices appears very low, offering a substantial margin of safety for a long-term investment in a financially robust company. AI tools could reduce customer seat counts ("seat contraction"). Major competitors (e.g., Google, Claude, Gemini) could release disruptive, directly competing creative software, making Adobe's core products obsolete.
ADBE
HIGH
Apr 14, 18:17
Key Points
['Forward P/E of 9.5 is very low', 'Record financial performance', 'Aggressive share buyback program', 'Priced for business decline', 'Narrative-driven selloff provides opportunity']
April 14, 2026 at 18:17