Adobe Shares Slide Despite AI Push as CEO Calls Stock Undervalued

Analysts point to stronger growth, higher margins, lower valuation versus Oracle, urging diversified exposure.

Overview

Adobe fell about 6.1% on Oct. 29 even after unveiling new AI tools at MAX and expanding its Google Cloud partnership.
Product updates included the Firefly Image Model 5 and an agentic AI integration roadmap across core applications.
CEO Shantanu Narayen said the stock trades below intrinsic value and highlighted increased share repurchases.
William Blair’s Jake Roberge reaffirmed a Buy rating following MAX, citing reaffirmed FY 2025 guidance and identified growth catalysts into FY 2026.
Forbes/Trefis contrasted Adobe with Oracle after ORCL’s ~6.7% drop, noting ADBE’s 10.7% LTM revenue growth, 36.2% operating margin, low leverage, and ~20.5 P/E, while emphasizing portfolio diversification and past drawdown risk.