He fully exited Adobe: a long-term reversal is possible, but near-term momentum is clearly too weak, so he sold first.

Adobe is dealing with open-source copycats, flawed pricing and having dropped the ball on AI; its long-term path is uncertain, but security, data and compliance provide a moat.

The host is currently buying Adobe and adding to his position over time, seeing it as a case where the stock is down but the business is better, and is dollar-cost averaging into the single stock for the long term.

The host has reopened a long position in Adobe (ADBE) and believes the stock is too attractive here with room to rise. Its P/E is only 13.3 and the price is far below his DCF fair value, roughly half of reasonable value. Adobe’s Photoshop, Premiere and other tools are industry standards, with steady growth in revenue, profit, and cash flow. Generative AI currently cannot produce acceptable image/video quality nor replace the granular control of professional editing software, and Adobe is integrating AI itself. The key risk is a free AI-generated alternative such as Compositor disrupting the industry, so he will watch news closely and be ready to exit.