Here’s Columbia Seligman Global Technology Fund’s Comment on Adobe (ADBE)

Columbia Threadneedle Investments, an investment management company, released its “Columbia Seligman Global Technology Fund” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. The US equities strongly rebounded in the second quarter following a turbulent first quarter. The fund’s Institutional Class shares returned 19.52% in the quarter, compared to a 23.18% return for the MSCI World Information Technology Index-Net. In addition, you can check the fund’s top 5 holdings for its best picks for 2025.

In its second-quarter 2025 investor letter, Columbia Seligman Global Technology Fund highlighted stocks such as Adobe Inc. (NASDAQ:ADBE). Adobe Inc. (NASDAQ:ADBE) is a technology company that operates through Digital Media, Digital Experience, and Publishing and Advertising. The one-month return of Adobe Inc. (NASDAQ:ADBE) was -0.19%, and its shares lost 31.45% of their value over the last 52 weeks. On September 24, 2025, Adobe Inc. (NASDAQ:ADBE) stock closed at $353.27 per share, with a market capitalization of $149.857 billion.

Columbia Seligman Global Technology Fund stated the following regarding Adobe Inc. (NASDAQ:ADBE) in its second quarter 2025 investor letter:

“The fund did not hold a position in Adobe Inc. (NASDAQ:ADBE), which benefitted performance relative to the benchmark as Adobe’s stock price was relatively flat during the quarter. Analysts have expressed concern that generative AI tools like Sora and Midjourney could erode Adobe’s pricing power and growth outlook in the creative software market.”

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

Adobe Inc. (NASDAQ:ADBE) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 104 hedge fund portfolios held Adobe Inc. (NASDAQ:ADBE) at the end of the second quarter, up from 111 in the previous quarter.  In the fiscal third quarter of 2025, Adobe Inc. (NASDAQ:ADBE) reported record revenue of $5.99 billion, representing 10% year-over-year growth. While we acknowledge the risk and potential of Adobe Inc. (NASDAQ:ADBE) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than Adobe Inc. (NASDAQ:ADBE) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered Adobe Inc. (NASDAQ:ADBE) and shared the list of best technology stocks to invest in for the long term. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.