Adobe Inc. (NASDAQ:ADBE) is among the Stocks take center stage as Jim Cramer reviews the S&P 500’s top performers and Nasdaq 100’s biggest laggards during the first quarter.. Cramer highlighted the threats to the company, as he stated:
The ninth worst decliner is Adobe, which fell more than 30% in the first quarter. But really that’s just the latest indignity, I should say, for this snake-bitten former king of the clouds, who everyone knows is, or at least assumes, is finished. At $241 and change, Adobe shares are down more than 65% from their all-time high set in November 2021. The stock now trades at just 10 times this year’s earnings estimates. He’s operating like a homebuilder, for God’s sake.
But every time OpenAI, Anthropic, or Gemini release some new design tool, Adobe’s stock goes down. Now they have new competition, Figma, which has also been terrible, the action, Canva, is an ultra-cheap option. So why? Who am I to say that Adobe stock has become too cheap? It can always be cheaper. One day, design schools will leave Adobe behind and start their students with Canva. That will end Adobe’s design dominance, and it could be existential from there.
Photo by Jakob Owens on Unsplash
Adobe Inc. (NASDAQ:ADBE) offers creative, document, and digital experience software. The company’s solutions are used to create, manage and optimize digital content and customer experiences.
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