Parkev Tatevosian, CFA on $ADBE (Nov 2, 2026)
Adobe at about $250 is in line with the speaker's fair value. He thinks fears of AI-driven customer switching overlook how costly it is to move a whole corporate environment off Adobe, so competition will hurt less than the market appreciates. He owns shares and would add more at current prices.
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Last but not least, Adobe, which was stuck in the SAS software crisis earlier this year, but its stock price has recovered well since then. I have calculated a fair value for Adobe that is in line with the current market price of $250.
The reason Adobe stock can be obtained at this discount today is due to developments in artificial intelligence at other companies, and the concern that its customers will switch to an entity that uses artificial intelligence at a much lower price.
However, this ignores the high cost of moving the entire corporate environment away from the Adobe products and services they have become accustomed to using. This will certainly harm the company, as competition always does, but not to the extent that market participants appreciate, in my opinion.
I own Adobe shares in my portfolio and am interested in adding more if prices remain at their current levels.
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Parkev Tatevosian, CFA has 6 calls on this stock; only the adjacent ones are shown.