Adobe: In The AI Era, Stable Is No Longer Sexy
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Vinay Utham, CFA1.28K FollowersFollow5ShareSavePlay(15min)CommentsSummaryAdobe Inc. (ADBE) delivered strong Q4 results, beating revenue and EPS estimates, but investor enthusiasm remains muted amid competitive AI headwinds.ADBE's AI monetization is progressing, with generative credit consumption up 3x and Firefly subscriptions doubling, yet growth rates remain stalled at ~11%.The Semrush acquisition and OpenAI partnership are positive but unlikely to be strong growth catalysts given Canva’s lead and intensifying competition.I downgrade ADBE from BUY to HOLD; the stock is fairly valued at $353 PT, with stable but unexciting growth in the current AI landscape. Photoboyko/iStock via Getty Images Investment Thesis The last time I wrote about Adobe Inc (NASDAQ: (ADBE)), in June 2025, I analyzed the company’s second quarter results and examined the key takeaways, with a particular emphasis on how the company’sThis article was written byVinay Utham, CFA1.28K FollowersFollowAn independent investor in the Indian and US equity markets with a CFA Charter and a PhD in Finance from University of Durham, U.K. I hold an Honorary Associate Professor in Finance and Corporate Governance title at Brunel University London. I have a YouTube and a Podcast channel, titled The Stock Doctor,' where I discuss my views on the US and Indian markets every week. In addition, I actively undertake quantitative research in the areas of US equities, Behavioural Finance, Corporate Governance, Activist Hedge Funds, Cryptocurrencies and M&A , and have published in top-ranked peer-reviewed journals.Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. 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.