Canva’s AI Push Is Making Waves—And Adobe (ADBE) Investors Are Taking Note

Adobe Inc. (NASDAQ:ADBE) is one of the 10 Trending AI Stocks on Wall Street Right NowOn June 23, Citizens JMP analyst Patrick Walravens reiterated a “Market Perform” rating on the stock without a price target.

“We maintain our Market Perform rating on Adobe Systems, Inc. after privately held competitor Canva announced its intent to acquire MagicBrief, “an AI-powered ad platform,” and after the stock has fallen 15% year to date versus an increase of 1% for the Russell 3000.

MagicBrief is an AI-powered platform that “makes it easier for marketers to unlock, understand, and respond to the content strategies, formats, and messages that perform best.” Industry sources have commented that the acquisition is “interesting because Canva’s challenge is to not make the product bloated with features,” with Canva’s success relying on its ability to “‘Canva-ize’ it and make it easy for anyone to pick it up and go.”

Canva’s AI Push Is Making Waves—And Adobe (ADBE) Investors Are Taking Note

Adobe, software

The firm believes that Adobe is fairly valued, as it currently trades at CY26E EV/FCF and EV/revenue multiples of 16x and 6.3x, respectively.

Some key risks facing the company include failure to innovate, issues relating to the development and use of artificial intelligence, and failing to realize the anticipated benefits of its acquisitions.

While we acknowledge the potential of ADBE as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.