Adobe (NASDAQ:ADBE) Stock Price Up 1.8% – Should You Buy?

by · The Cerbat Gem

Adobe Inc. (NASDAQ:ADBE – Get Free Report) shares rose 1.8% during trading on Thursday . The stock traded as high as $301.82 and last traded at $299.6220. Approximately 4,962,961 shares were traded during mid-day trading, a decline of 2% from the average daily volume of 5,052,019 shares. The stock had previously closed at $294.23.

Adobe News Roundup

Here are the key news stories impacting Adobe this week:

  • Positive Sentiment: AI-driven Digital Media growth: Adobe’s Acrobat and Express AI features helped Digital Media revenue grow ~11% and monthly active users rose over 15% in FY25, supporting the company’s subscription revenue momentum and near-term earnings credibility. Adobe’s Digital Media Revenues Gain Traction
  • Positive Sentiment: New AI product features expand addressable use cases: Acrobat now generates podcasts, presentations and interactive outputs from PDFs; Express and Creative Cloud continue to get AI boosts that increase end-user stickiness and upsell potential. These product releases support longer-term monetization of AI features. Adobe’s AI-Powered PDFs Now Talk Back
  • Positive Sentiment: Pro video tools upgraded with AI: Major AI-powered updates to Premiere and After Effects streamline professional workflows, which can support enterprise and creative professional retention and revenue per user. Adobe unveils new AI-powered video editing tools for Premiere
  • Positive Sentiment: Hollywood partnerships & “IP-safe” GenAI push: Adobe’s Firefly Foundry and outreach to talent agencies, VFX houses and filmmakers aim to provide IP-safe generative models for entertainment — a strategic move that could unlock larger enterprise deals and reduce legal risk for creative customers. Adobe is developing “IP-safe” gen AI models for the entertainment industry
  • Positive Sentiment: Brand & creator investments: Adobe announced a $10M film & TV fund and is participating in Sundance panels and creator programs—moves that boost industry visibility and adoption among creative professionals. Variety and Adobe to Host Six Expert Panels at Sundance
  • Neutral Sentiment: Acquisition activity in play: Adobe’s proposed $12 per-share offer for Semrush signals M&A ambition to broaden marketing/content capabilities; the deal could be strategic but carries execution and integration risk. Johnson Fistel Investigates Semrush Shareholders’ Rights Following Adobe’s $12 Buyout Offer
  • Neutral Sentiment: Peer comparison: Analysts are re-evaluating Adobe vs. alternatives (eg, ServiceNow), highlighting differences in AI strategy and go-to-market — useful for investors sizing relative risk/reward but not an immediate catalyst. ServiceNow vs. Adobe: Which Cloud Software Stock Has an Edge Now?
  • Negative Sentiment: Legal/activist noise over Semrush sale: A shareholder-law firm has launched an investigation related to the Semrush transaction, introducing potential delay, litigation risk or reputational headwinds. Johnson Fistel Investigates Semrush Shareholders’ Rights
  • Negative Sentiment: Market sentiment & valuation pressure: Multiple headlines note a recent sharp share decline, 52-week low prints and renewed investor concern that AI could compress long-term SaaS margins — these narratives are weighing on the stock and may sustain volatility. Adobe Stock Price Crash Supercharges
  • Negative Sentiment: High-profile skepticism: Coverage noting Jim Cramer considering canceling his Adobe subscription and cautious analyst commentary amplify negative sentiment and could pressure short-term flows. Jim Cramer Reveals Why He Might Cancel His Adobe (ADBE) Subscription

Analysts Set New Price Targets

ADBE has been the topic of a number of recent analyst reports. Stifel Nicolaus reduced their price objective on Adobe from $480.00 to $450.00 and set a “buy” rating on the stock in a research note on Tuesday, December 9th. Weiss Ratings reiterated a “hold (c-)” rating on shares of Adobe in a research report on Monday, December 29th. Oppenheimer lowered shares of Adobe from an “outperform” rating to a “market perform” rating in a report on Tuesday, January 13th. Royal Bank Of Canada reaffirmed an “outperform” rating and issued a $430.00 target price on shares of Adobe in a research note on Thursday, December 11th. Finally, DA Davidson reiterated a “buy” rating and set a $500.00 target price on shares of Adobe in a research report on Thursday, December 11th. One equities research analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating, eleven have given a Hold rating and four have assigned a Sell rating to the company. Based on data from MarketBeat, the stock has an average rating of “Hold” and an average price target of $402.85.

View Our Latest Report on ADBE

Adobe Stock Performance

The business’s fifty day moving average price is $332.38 and its 200-day moving average price is $345.37. The company has a debt-to-equity ratio of 0.53, a current ratio of 1.00 and a quick ratio of 1.00. The stock has a market capitalization of $122.99 billion, a PE ratio of 17.93, a P/E/G ratio of 1.14 and a beta of 1.53.

Adobe (NASDAQ:ADBE – Get Free Report) last posted its earnings results on Wednesday, December 10th. The software company reported $5.50 earnings per share for the quarter, topping analysts’ consensus estimates of $5.40 by $0.10. Adobe had a net margin of 30.00% and a return on equity of 61.28%. The business had revenue of $6.19 billion for the quarter, compared to analyst estimates of $6.11 billion. During the same quarter in the prior year, the firm posted $4.81 EPS. Adobe’s revenue was up 10.5% on a year-over-year basis. Adobe has set its Q1 2026 guidance at 5.850-5.900 EPS and its FY 2026 guidance at 23.300-23.500 EPS. As a group, equities research analysts expect that Adobe Inc. will post 16.65 EPS for the current year.

Insider Buying and Selling

In other Adobe news, CAO Jillian Forusz sold 149 shares of the company’s stock in a transaction dated Friday, October 31st. The stock was sold at an average price of $337.88, for a total value of $50,344.12. Following the transaction, the chief accounting officer directly owned 3,426 shares in the company, valued at $1,157,576.88. This represents a 4.17% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. 0.16% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently modified their holdings of the business. Venturi Wealth Management LLC raised its stake in Adobe by 47.7% in the fourth quarter. Venturi Wealth Management LLC now owns 1,337 shares of the software company’s stock valued at $468,000 after purchasing an additional 432 shares in the last quarter. Triad Wealth Partners LLC increased its holdings in shares of Adobe by 18.1% in the 4th quarter. Triad Wealth Partners LLC now owns 765 shares of the software company’s stock worth $268,000 after buying an additional 117 shares during the last quarter. DDD Partners LLC raised its position in shares of Adobe by 108.4% during the 4th quarter. DDD Partners LLC now owns 13,476 shares of the software company’s stock valued at $4,716,000 after buying an additional 7,010 shares in the last quarter. BOCHK Asset Management Ltd purchased a new stake in shares of Adobe during the 4th quarter valued at $1,575,000. Finally, Alpha Omega Wealth Management LLC lifted its holdings in shares of Adobe by 4.0% during the 4th quarter. Alpha Omega Wealth Management LLC now owns 3,085 shares of the software company’s stock worth $1,080,000 after acquiring an additional 119 shares during the last quarter. Hedge funds and other institutional investors own 81.79% of the company’s stock.

Adobe Company Profile

(Get Free Report)

Adobe Inc, founded in 1982 by John Warnock and Charles Geschke and headquartered in San Jose, California, is a global software company that develops tools and services for creative professionals, marketers and enterprises. Under the leadership of CEO Shantanu Narayen, who has led the company since 2007, Adobe has evolved from a provider of desktop publishing tools into a cloud-centric provider of digital media and digital experience solutions.

The company’s core offerings are organized around digital media and digital experience.

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