Everyone was bullish on Adobe last 2 weeks, and today it dropped -8.5%
u/shaggy98 ·
Reddit — r/ValueInvesting
· April 23, 2026 at 14:21
· ⬆ 60 pts
· 💬 77 comments
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AI Summary
Summary
The post laments Adobe’s (ADBE) 8.5% drop after two weeks of gains, attributing it to panic selling triggered by IBM and ServiceNow earnings, not any Adobe-specific news.
The author’s thesis is that ADBE remains undervalued (P/E 14, forward P/E 8) and the sell-off is irrational, making it a potential buying opportunity for long-term investors.
Quality assessment: More of an emotional vent with valuation basics than a well-researched DD; lacks detailed competitive or fundamental analysis beyond P/E ratios.
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When market finally looked like it understood that Adobe won't die because of AI, and institutionals began to take positions, today out of a sudden everybody got scared and sold.
I checked if Antropic launched someting, but no, it was because of IBM and Service Now results. And their results even weren't that bad, but investors came to the conclusion that they must panic sell Adobe, because is over. The same Adobe that has a P/E of 14 and forward P/E of 8.
So 2 weeks of strong gains erased in a single day. It's very fun to be Adobe investor.
ADBE trades at P/E 14 (trailing) and forward P/E ~8 – historically low multiples for the company. The sharp drop on no company-specific bad news (only sector sympathy) suggests an emotional overreaction, which often reverses as fundamentals reassert. While not an explicit buy call, the author implies that the current price offers a margin of safety for patient investors; monitoring for further downside or stabilization could present a long entry. AI disruption to Adobe’s creative suite is a legitimate long-term threat; sector-wide rotation away from software could persist; forward earnings may be overstated if demand weakens.