Summary

• Adobe faces persistent new lows, leadership transition upheavals, and intense competitive threats from AI foundation model companies, challenging its former market-darling status.
• ADBE's pivot to a freemium strategy aims to reignite user growth but risks near-term ARR deceleration.
• Despite an 8x forward earnings multiple and robust user base, market sentiment remains deeply pessimistic due to structural uncertainties and management transitions.
• I refrain from a sell rating, as price action has not confirmed a long-term structural bear market, but conviction for a near-term turnaround is low.
• Watching from the sidelines appears to be the more astute decision. There are plenty of turnaround plays to place our bets on, but certainly not ADBE.
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Adobe: Looking more gloomy than ever

Adobe (ADBE) investors are facing more gloom than ever as the downside in the stock has continued beyond the April lows.

With ADBE now reaching lows that were last

Analyst’s Disclosure: I/we have a beneficial long position in the shares of CRWD either through stock ownership, options, or other derivatives. 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.

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