DA Davidson Reaffirms Buy on Adobe (ADBE) After Figma’s Strong S-1 Filing

Adobe Inc. (NASDAQ:ADBE) ranks among the best cloud stocks to buy according to Wall Street analysts. In response to Figma’s S-1 filing on July 1, DA Davidson has reaffirmed its $500 price target and Buy rating for Adobe Inc. (NASDAQ:ADBE).

According to the research firm, Figma’s financial profile is solid, with $821 million in revenue over the last 12 months, which represents 48% year-over-year growth as of the first quarter of 2025. The firm also reported 18% non-GAAP operating margins. Adobe Inc. (NASDAQ:ADBE), by contrast, makes almost $22.6 billion a year and maintains impressive gross profit margins of 89.25%.

Figma and Adobe Inc. (NASDAQ:ADBE) are both in a strong position to profit from this industry trend, according to DA Davidson, as artificial intelligence has sped up the production of digital products.

Adobe Inc. (NASDAQ:ADBE) is a world leader in software creation, known for its cutting-edge digital media solutions. Its major products, including Photoshop and Acrobat are essential tools for creative sectors and organizations across the globe. It also provides a uniform cloud-based document services platform called the Document Cloud.

While we acknowledge the potential of ADBE to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than AMD and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None.