AI & Tech
Adobe Trading Near Seven-Year Lows Despite 96% Subscription Revenue
We Study Billionaires
TIP825: Meta, Adobe, Booking Holdings w/ Stig Brodersen, Tobias Carlisle & Hari Ramachandra
"Market cap roughly $100 billion, and it has been growing double digits for the longest time. And it's not only trading at a 52-week low or near that, but near a 7-year low."
Stig Brodersen pitched Adobe at $270, arguing the market has oversold the stock due to AI fears despite 96% of its $23 billion revenue coming from subscriptions with 41 million paying users. He emphasized switching costs and professional pride make Adobe's creative tools difficult to replace, though he acknowledged top-of-funnel risks from AI content generation tools.
From this episode
We Study Billionaires