Adobe (ADBE) vs. ADSK and CRM: Can Firefly and GenStudio Turn AI Into Sustained Growth?
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Is ADBE a good stock to buy? We came across a bullish thesison Adobe Inc. on Astute Optics – US’s Substack. In this article, we will summarize the bulls’ thesis on ADBE. The thesis was published on September 11th when the stock was trading at $252.23. ADBE corrected 7.71% since then. The decline appears to reflect continued concerns about Adobe’s near-term growth and its ability to turn AI adoption into revenue, compounded by competition from cheaper creative tools and uncertainty around its leadership transition. Adobe Inc.’s share was trading at $232.77 as of October 7th 2026. ADBE’s trailing and forward P/E were 13.44 and 8.73 respectively according to Yahoo Finance.
This isn’t the first time we see a software company pitched as a great investment. Unfortunately, ADBE shares lost a third of its value over the last 12 months. Comparable stocks like Intuit Inc. and Salesforce, Inc. lost 54.12% and 8.47%, respectively, during the same period. Why are software stocks declining so much and is it really a good time to buy them?
In July, we published an article about the 10 Best Beaten-Down Technology Stocks to Buy Now and ADBE ranked #5 in that article. ADBE returned 0.93% since then. So, hedge funds were bullish on ADBE but the stock has barely gained ground. This article explains why hedge funds were bullish on ADBE. Before getting into our analysis, let’s take a look at the business and why some investors like the stock so much.
Adobe Inc. (NASDAQ:ADBE) is one of the world’s dominant creative and digital experience software companies, known for products like Creative Cloud, Document Cloud, Firefly, and its enterprise marketing tools (see why Adobe forecasts 6.7% growth in US holiday online sales on discounting). The company’s biggest opportunity right now is generative AI, and how well it capitalizes on that shift is central to the stock’s story. Adobe Inc. wants AI to expand its creative and enterprise tools, not replace the subscription model that has made it so profitable.
In its fiscal second quarter, revenue grew 11% year over year to a record $6.62 billion, and adjusted earnings per share rose 18% to $5.96, beating analyst expectations. Despite this strong growth, the stock trades at about 15 times trailing earnings, far below the peer average of roughly 33 times. That gap shows investors are still cautious, waiting to see if Adobe Inc. can protect its strong profits as AI reshapes how creative software is built and sold.
