Why I Opened a Position in Adobe $ADBE (Adobe Systems Inc)
A common fear in the market today is that AI will make many established tech companies obsolete. I believe the opposite is true for the industry leaders. Instead of being a threat, AI is becoming a powerful tool for these giants to generate new revenue streams.
We are already seeing this play out successfully with companies like $GOOGL (Alphabet Inc Class A), which is the top position in my portfolio. Now, I believe Adobe is poised to do the same.
Adobe isn’t just integrating AI into its products to improve them; it's actively monetizing this innovation. With groundbreaking features in its creative suite, Adobe is not only enhancing its user experience but also creating new, essential subscription tiers. The company is proving that it can successfully turn AI-powered features into income.
Looking at the numbers, the market still seems to be underestimating this potential. (forward P/E ratio around 15x). This suggests the market hasn't fully priced in its AI growth story.
I see Adobe as a company with a strong competitive advantage that is leveraging AI to build on its existing strength, so I will keep it as a long-term holding in my portfolio.... Show More
In 5 years, Adobe could face real disruption from AI.
The Google vs. Adobe comparison is misleading. Google serves the public directly and has many businesses (YouTube, Cloud, Waymo, etc.), so even if search is affected, it can adapt. Adobe, on the other hand, is mostly for professionals who create... Show More
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Mon Nov 17 2025 20:11:01 GMT+0000 (Coordinated Universal Time)
