Adobe Inc. (NASDAQ:ADBE) is among the stocks in focus as Jim Cramer reviewed the S&P 500’s top performers and the Nasdaq 100’s biggest laggards for the first quarter. Cramer highlighted the threats to the company, as he stated:
The ninth-worst decliner is Adobe, which was down over 30% in the first quarter. But that’s really just the latest indignity, I should say, for this snake-bitten former cloud king, which everyone knows is, or at least they assume, is toast. At $241 and change, Adobe’s stock is down more than 65% from its all-time high set in November, 2021. Stock now trades at just 10 times this year’s earnings estimates. It’s trading like a home builder for heaven’s sake.
But anytime OpenAI, Anthropic, or Gemini comes out with some new design tool, Adobe stock goes lower. They now have new competition, Figma, which has also been terrible, too, the stock, Canva, there’s a, that’s an ultra-cheap option. So why am I, who am I to say that Adobe stock’s gotten too cheap? It can always get cheaper. One day, the design schools will leave behind Adobe and start their students on Canva. That will make the end of Adobe’s design dominance, and it could be existential from there.
Photo by Jakob Owens on Unsplash
Adobe Inc. (NASDAQ:ADBE) provides creative, document, and digital experience software. The company’s solutions are used to create, manage, and optimize digital content and customer experiences.
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