Adobe’s $12B Buyback Amid Stock Slump Highlights Value Disconnect
Adobe’s shares have languished despite its dominant position in creative software, dropping 36% over the past year. The disconnect between market sentiment and the company’s fundamentals has prompted aggressive stock buybacks—$12 billion worth—as management capitalizes on undervaluation.
While AI-driven bull markets reward growth narratives, Adobe’s focus on profitability and recurring revenue hasn’t resonated. The buyback program signals confidence in underlying strength, contrasting with short-term investor skepticism. A recalibration appears inevitable once macroeconomic winds shift.