<div id="readability-page-1"><div><p>Adobe (ADBE) just wrapped up fiscal Q4 with earnings and revenue ahead of expectations, and the stock reaction says investors are already asking the next question: how durable is this AI driven momentum?</p> <p>See our latest analysis for Adobe.</p> <p>Even with the latest 7.65% one month share price return to about $356, Adobe’s year to date share price return of minus 19.18% and one year total shareholder return of minus 23.46% show improving but still fragile momentum.</p> <p>If Adobe’s AI push has you rethinking where software growth could come from next, it might be worth exploring other creative and productivity names in high growth tech and AI stocks.</p> <p>With shares still trading at roughly a 32% intrinsic discount and more than 22% below the average analyst target, is Wall Street undervaluing Adobe’s AI engine driven cash flows, or is it already baking in every ounce of future growth?</p> <h2>Most Popular Narrative Narrative: 7% Undervalued</h2> <p>With Adobe last closing at $356.43 against a narrative fair value of $383.06, Imperial’s framework suggests upside that hinges on nuanced long term assumptions.</p> <blockquote> <p><em>The key catalyst is the enterprise adoption of Adobe's generative AI, Firefly. Its &#34;commercial safe&#34; status, a direct result of being trained on licensed assets, gives it a powerful advantage over competitors in the corporate world where copyright infringement is a major legal concern. This allows Adobe to tap into the durable industry tailwind of digital transformation, leveraging its existing enterprise relationships to drive meaningful new revenue and defend its pricing power.</em></p> </blockquote> <p>Read the complete narrative.</p> <p>According to Imperial, this valuation hangs on a delicate balance between slowing growth, still elite margins, and a future earnings multiple that no longer assumes perfection. Want to see which specific long range growth, profitability, and re rating assumptions are doing the heavy lifting in that fair value calculation?</p> <p><strong>Result: Fair Value of $383.06 (UNDERVALUED)</strong></p> <p>Have a read of the narrative in full and understand what's behind the forecasts.</p> <p>However, this narrative could unravel if Adobe’s AI monetization disappoints or competitive pressure from rivals like Figma and Midjourney accelerates faster than expected.</p> <p>Find out about the key risks to this Adobe narrative.</p> <h2> Build Your Own Adobe Narrative</h2> <p>If you see the story differently or want to stress test the numbers yourself, you can spin up a custom narrative in under three minutes: Do it your way.</p> <p>A good starting point is our analysis highlighting 4 key rewards investors are optimistic about regarding Adobe.</p> <h2>Looking for more high conviction investment ideas?</h2> <p>Before you move on, lock in your next opportunities using the Simply Wall Street Screener, built to surface focused ideas you do not want to overlook.</p> <ul> <li>Capture powerful turnaround potential by targeting beaten down names trading below their cash flow value through these 903 undervalued stocks based on cash flows.</li> <li>Capitalize on the AI acceleration wave by zeroing in on innovators shaping the next era of automation and intelligence via these 26 AI penny stocks.</li> <li>Strengthen your income stream by pinpointing dependable payers with attractive yields using these 13 dividend stocks with yields &gt; 3%.</li> </ul> <p><em> This article by Simply Wall St is general in nature. <strong>We provide commentary based on historical data     and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice.</strong> It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your     financial situation. We aim to bring you long-term focused analysis driven by fundamental data.     Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.     Simply Wall St has no position in any stocks mentioned.</em></p><div><p>Mobile Infrastructure for Defense and Disaster</p><p>The next wave in robotics isn't humanoid. Its fully autonomous towers delivering 5G, ISR, and radar in under 30 minutes, anywhere.</p><p>Get the investor briefing before the next round of contracts</p><p><span>Sponsored On Behalf of CiTech</span></p></div></div></div>

ADBE

<p>Adobe's Q4 earnings exceeded expectations, but its stock remains undervalued, trading at a 32% intrinsic discount. The company's AI initiatives, particularly the generative AI Firefly, are seen as key growth drivers. Despite a recent share price increase, Adobe's year-to-date return is negative. Analysts suggest the stock is undervalued, with a fair value of $383.06, but warn of risks from AI monetization challenges and competition from Figma and Midjourney.</p>

- Adobe (ADBE) reported fiscal Q4 earnings and revenue that exceeded expectations, but its year-to-date share price return remains negative at minus 19.18%.  
- The company's AI initiative, particularly the generative AI tool Firefly, is seen as a key driver for future growth, with a fair value estimate of $383.06 suggesting it is currently undervalued.  
- However, risks include potential disappointments in AI monetization and increasing competition from rivals like Figma and Midjourney, which could impact Adobe's market position.

Adobe (ADBE) Valuation Check After Q4 Beat and Expanding AI Integrations