Adobe's cash generation and growing AI subscriptions give its tentative turnaround fundamental support. It has $10.59B in free cash flow; revenue and EPS are expected to grow at double-digit rates through 2028, while AI-first ARR is up 150% year over year and Firefly ARR 40% quarter over quarter. Its Stage 1 base is attempting to break a long downtrend. x.com 

Adobe is a bit undervalued, though not significantly, at 13x earnings with 13% revenue growth. Its falling profit margin is concerning, and AI threats are growing as image generation improves. x.com 

Adobe's problem is no longer valuation but bad sentiment toward software companies. It fell after hours in sympathy with ServiceNow despite trading around 15x trailing and 10x forward earnings while still growing 10%, and none of that matters right now. To recover, Adobe needs more collaborative projects and joint events with leading AI companies so it is seen as definitively part of the future. x.com 

Adobe is a strong company hit harder than it should be, as the market treats a temporary slowdown as permanent decline. It fits the undervalued setup of a real moat, temporary rather than structural problems and extremely negative sentiment, where the price has fallen more than the fundamentals, lowering risk and raising upside. Great companies adapt and recover. x.com 

Adobe is priced below its Covid-crash intraday low even though it now makes 3x more money with 20% fewer shares, and its best run of profit growth has come during the AI era. It beat last quarter's guidance and raised its full-year outlook, yet trades around 10x current, a low price for growth that should destroy the bear narrative. It also bought back 9.5M shares for over $2.3B. x.com  x.com 

Adobe looks dead because AI can now generate images in 0.6 seconds, undercutting the value case for buying it. The stock is losing its 200-month average, a 20-year average price that only a truly dead name breaks, making it something to avoid. x.com 

Adobe, Salesforce and ServiceNow still generate massive cash flow, push deeper into AI and sit at the center of enterprise operations. Three of the biggest SaaS names remain beaten up in 2026; their valuations have been crushed, but the long-term opportunity may not have been. The market has swung way too far against them. x.com 

Adobe's AI-first ARR passing $500M and growing more than 150% year over year is a strong answer to the belief that AI will only hurt the company. AI is still a small part of the business, but the quarter was a really solid beat and raise. x.com 

Adobe's stock is unattractive to investors while the AI rally dominates, even though the company itself is nowhere near dying. Once the AI ride cools off a bit, Adobe can see some rebound. x.com 

Adobe's results are solid enough that panic selling looks insane. It delivered a double beat, raised full-year guidance and has some stability with a new CEO, yet many investors are again calling it trash. x.com