Bullish Trade Call for Adobe (ADBE)

13 days ago

"Adobe went from 35p and it used to trade around 50p, now trading at 14.8 times earnings. I think Adobe is presenting one of the best opportunities in the market and one of the most misunderstood opportunities, and the company believes its misunderstood because theyre using their free cash flow to buy massive quantities of stock and reduce shares outstanding. I used to be bearish on Adobe, but if AI is not killing Adobe as fast as people believe, I think 14 times earnings will likely end up being cheap and the stock could recover in a major way. So, I like Adobe very much over here."

The speaker outlines a bullish trade call for Adobe (ADBE), emphasizing its undervaluation at around 14 times forward earnings despite strong fundamentals, recurring revenue, and continued cloud growth. They highlight Adobes active share buybacks and potential multiple reversion if AI does not hurt its fundamentals, making it one of the best buying opportunities in the market.

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