Adobe’s stock has fallen sharply in recent years due to worries about artificial intelligence replacing its products. However, this fear trade may be overblown. Integrating AI into its software could actually help Adobe retain existing customers and attract new ones.
Investors can see that Adobe is undervalued after a big sell-off. The company’s stock trades at a low price-to-earnings ratio and growth rate expectations are high. Many technical indicators, such as demand zones and historical patterns, suggest that Adobe is nearing its lowest point and poised for a strong recovery in 2026.
The AI disruption fears driving this selloff may be exaggerated, and the real benefit of integrating AI into Adobe’s product suite could outweigh concerns about replacement. This makes now an attractive time to invest in Adobe stock as it looks set to rebound.
Source: https://seekingalpha.com/article/4870514-adobe-a-broken-stock-but-not-a-broken-company