What Makes Adobe (ADBE) an Attractive Opportunity?

3 hours ago 2

Soumya Eswaran

Mon, January 12, 2026 astatine 7:02 AM CST 3 min read

Bristlemoon Capital, a planetary equities firm, released its “Bristlemoon Global Fund” fourth-quarter 2025 capitalist letter. A transcript of the missive tin beryllium downloaded here. The money returned -6.2% successful the December 4th and a 0.3% instrumentality successful December. Since its inception, the money has produced a cumulative instrumentality of 11.9%, nett of fees. In 2025, marketplace trends intensified, with perceived AI winners rallying, portion stocks considered "cheap" dropped adjacent further if labeled arsenic AI losers. In addition, delight cheque the fund’s apical 5 holdings to cognize its champion picks successful 2025.

In its fourth-quarter 2025 capitalist letter, Bristlemoon Global Fund highlighted stocks specified arsenic Adobe Inc. (NASDAQ:ADBE). Adobe Inc. (NASDAQ:ADBE) is simply a exertion institution that operates done Digital Media, Digital Experience, and Publishing and Advertising. The one-month instrumentality of Adobe Inc. (NASDAQ:ADBE) was -4.90%, and its shares mislaid 18.25% of their worth implicit the past 52 weeks. On January 9, 2026, Adobe Inc. (NASDAQ:ADBE) banal closed astatine $333.95 per share, with a marketplace capitalization of $1141.92 billion.

Bristlemoon Global Fund stated the pursuing regarding Adobe Inc. (NASDAQ:ADBE) successful its 4th fourth 2025 capitalist letter:

We utilised the caller marketplace pessimism astir AI losers to initiate a presumption in Adobe Inc. (NASDAQ:ADBE) astatine 15x earnings, a valuation debased that hasn’t been reached successful implicit 13 years. While the bearish statement presumption is that generative AI is an existential menace that volition pb to reduced usage of Adobe’s originative suite, the concern continues to people precise steadfast fiscal results, increasing gross astatine treble digit rates and net astatine a mid-teens percent rate. We spot a satellite wherever Adobe is simply a beneficiary of the Jevons paradox: arsenic AI collapses the outgo of generating earthy content, the request for integer contented volition explode, exponentially expanding the request for the tools required to edit, assemble, and negociate that output.

Adobe Inc. (ADBE) Slips 10.45% Amid Doubts Over Firefly’s AI Monetization Potential

Adobe Inc. (NASDAQ:ADBE) is successful the 13th presumption connected our database of 30 Most Popular Stocks Among Hedge Funds. According to our database, 88 hedge money portfolios held Adobe Inc. (NASDAQ:ADBE) astatine the extremity of the 3rd quarter, compared to 104 successful the erstwhile quarter. For the fiscal twelvemonth 2025, Adobe Inc. (NASDAQ:ADBE) reported revenue of $23.77 billion, representing a 11% year-over-year growth. While we admit the imaginable of Adobe Inc. (NASDAQ:ADBE) arsenic an investment, we judge definite AI stocks connection greater upside imaginable and transportation little downside risk. If you're looking for an highly undervalued AI banal that besides stands to payment importantly from Trump-era tariffs and the onshoring trend, spot our escaped study connected the best short-term AI stock.