Is Adobe Stock Positioned for a Major Rebound?

Adobe shares are navigating a challenging period in 2025, trading near their annual lows amid broader sector weakness. As investors rapidly exit software positions, market analysts are presenting a compelling counter-narrative: the technology giant may be substantially undervalued. The central question facing market participants is whether fears about AI disruption are overstated or if this represents a classic case of catching a falling knife.

Amid the ongoing sector sell-off, recent analysis from Morningstar presents a striking assessment: Adobe’s current share price appears approximately 40% below its fair value estimate. The software sector has faced severe market punishment as capital rotates heavily toward hardware stocks, with generative artificial intelligence largely perceived as threatening Read more...