Adobe’s (ADBE) Stock Presents Undervalued Opportunity Amid AI Competition
Adobe's stock has faced headwinds in 2025 as investors question its ability to maintain growth against rising generative AI competitors. Yet current valuations appear overly pessimistic given the company's consistent execution.
At $362, ADBE trades NEAR 52-week lows despite delivering steady revenue and earnings growth. Technical indicators show the stock hovering near its 200-day moving average of $400—a level that may serve as both support and a near-term price target.
Market skepticism stems from modest sequential declines in subscription growth, though these concerns may be disproportionate to Adobe's fundamental strengths. The creative software leader continues to dominate its niche while strategically integrating AI capabilities.