Jun. 08, 2025 5:12 AM ETAdobe Inc. (ADBE) Stock, ADBE:CA StockDOCU, ADBE:CA, ADBEIan BezekInvesting Group Leader(15min)SummaryAdobe has both significant AI-driven opportunity and existential risk, making it a battleground stock with high uncertainty around its long-term prospects.The core professional user base should be secure, but Adobe risks losing casual and budget users to competitors like Canva along with specific AI apps and tools.The valuation is reasonable, but not especially cheap. I see some bulls leaning too heavily on valuation rather than confidence in the firm's future prospects.I see a strong moat for Adobe today, but have low certainty around its long-term prospects. Combined with the okay valuation, I assign a hold rating.Jaap2All across the technology industry, analysts are calculating the potential impact of artificial intelligence on existing business models.For many tech companies, there is significant potential upside if AI-enabled processes can make work more efficient and the software vendor can increaseIf you enjoyed this, consider Ian's Insider Corner to enjoy access to similar initiation reports for all the new stocks that we buy. Membership also includes an active chat room, weekly updates, and my responses to your questions.This article was written byIan Bezek22.83K FollowersIan Bezek is a former hedge fund analyst at Kerrisdale Capital. He has spent the decade living in Latin America, doing the boots-on-the ground research for investors interested in markets such as Mexico, Colombia, and Chile. He also specializes in high-quality compounders and growth stocks at reasonable prices in the US and other developed markets.Ian leads the investing group Ian's Insider Corner. Features of the group include: the Weekend Digest which covers everything from new ideas to updates on current holdings and macro analysis, trade alerts, an active chat room, and direct access to Ian. Learn More.Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. 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.Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.CommentsRecommended For You