Adobe $ADBE Stock Analysis: Photoshopping a Red Line into Green

u/Intrendias · Reddit — r/smallstreetbets · January 22, 2026 at 02:47 · ⬆ 1 pts · 💬 3 comments  | View on Reddit ↗
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Author rates Adobe a buy, citing resilient revenue growth and a discounted valuation despite AI and Canva competition concerns.

ADBE — LONG Author rates Adobe a buy, arguing it grows revenue 11% YoY to $23.7B in 2025 while the stock trades at a 5.4x P/S, below the software application industry average of 11x and its historical average of 13x. The mechanism is that Adobe's fundamentals are improving and its Firefly AI plus freemium web products defend against AI and Canva competition. Main stated risks are AI/new competition like Canva and rising R&D spend pressuring operating leverage.

While Adobe's fundamentals increase, Adobe has significantly declined in value. Adobe trades at a P/S of 5.4 as of 2025 FY. The software application industry average P/S ratio is 11

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u/Intrendias Reddit r/smallstreetbets
Adobe grows while discounted; Firefly defends AI, Canva competition
Author rates Adobe a buy, arguing it grows revenue 11% YoY to $23.7B in 2025 while the stock trades at a 5.4x P/S, below the software application industry average of 11x and its historical average of 13x. The mechanism is that Adobe's fundamentals are improving and its Firefly AI plus freemium web products defend against AI and Canva competition. Main stated risks are AI/new competition like Canva and rising R&D spend pressuring operating leverage.
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This Reddit post, published January 22, 2026, features u/Intrendias discussing ADBE. 1 trade idea extracted by AI with direction and confidence scoring.

Speakers: u/Intrendias  · Tickers: ADBE