8. Adobe Inc (NASDAQ:ADBE)
Number of Hedge Fund Holdings in Q4 2025: 91
Productivity software firm Adobe Inc (NASDAQ:ADBE)’s stock has struggled in today’s AI era. They are down by 29% over the past year and by 25.8% year-to-date. Amidst this dip, Cramer has discussed the firm several times over the past year. He has commented on the impact of AI on its products, and more recently, remarked that even Apple’s software might have an edge. Citi discussed Adobe Inc (NASDAQ:ADBE)’s shares on April 10th as it raised the share price target to $287 from $253 and kept a Neutral rating on the shares. Earlier, in March, William Blair had also commented on the firm. It downgraded Adobe Inc (NASDAQ:ADBE) to Market Perform and discussed competition in the software market. The financial firm remarked that while the software company was trading at cheaper multiples, it still faced tough competition. Cramer remarked on the competition Adobe Inc (NASDAQ:ADBE) was facing from Anthropic:
“Well let’s talk about the one that I think is basically the most impacted by Anthropic. Adobe. I can recreate Adobe on Anthropic for nothing, you can, it’s just like done. And that’s better than Canva, its’ better than Figma. And on Google, you can recreate it on Google. And here we go it’s been going up and it’s a big short squeeze and you basically have a 100 billion dollar company that may have an existential crisis, may not even be able to overcome what Google is doing. But the stock is going higher because it’s a short squeeze.
“Look Adobe is now, you know my daughter went to Parsons, and they give you a course on how to use Adobe. Of course, all the design schools give you a course on how to use Adobe. I think that when these design schools take Adobe out, because Adobe costs a lot of money, I think you’re going to say wow, this is a company that’s like digital equipment.”
Patient Opportunity Equity Strategy discussed Adobe Inc. (NASDAQ:ADBE) in its Q1 2026 investor letter:
“We initiated a position in Adobe Inc. (NASDAQ:ADBE), a casualty of the “SaaS-pocalypse”. Adobe is the dominant platform for creative professionals, holding a near-monopoly position across document management, digital design, and marketing software. Despite this strong competitive position, the stock has been weighed down by investor concerns around AI disruption to its core creative tools business. We believe these fears are overblown. You do not need to believe much for there to be attractive upside in the name. The company’s Document Cloud and Experience Cloud businesses represent durable, high-margin recurring revenue streams with limited disruption risk, and the company continues to incorporate AI into its product suite with its Firefly generative AI platform already beginning to monetize. If you simply believe the company can grow the bottom line at 7.5% annually over the next five years, the stock is worth roughly 60% more than where it trades today. The company continues to generate significant free cash flow, trading at a 10% FCF yield, and has returned meaningful capital to shareholders through buybacks, repurchasing a net 21% of shares outstanding over the last ten years.”
