Adobe stock has declined 30% in the past year, facing competition and potential overvaluation.

From NASDAQ: 2025-01-24 11:12:00

Adobe (ADBE) shares have fallen 29.8% in the past year, lagging behind the Computer and Technology sector’s 28.5% return. Fiscal 2025 estimates predict 9% growth in Digital Media revenues to $17.25-17.40 billion. Earnings are projected at $20.20-20.50 per share, with a Zacks Rank of #3 (Hold).

Competition in the Generative AI space from Microsoft-backed Open AI is impacting ADBE’s AI solutions monetization. Despite an expected 9% revenue growth in Digital Media, the company’s stock seems overvalued with a forward price/sales ratio of 8X. The company’s strong portfolio and enterprise client expansion offer growth potential.

A new top semiconductor stock recommended by Zacks has strong earnings growth potential. With the global semiconductor market projected to reach $803 billion by 2028, this stock is positioned to benefit from AI, Machine Learning, and IoT demand. Investors can access a free report on this stock from Zacks.



Read more at NASDAQ: Adobe Declines 30% in a Year: Buy, Sell or Hold the Stock in 2025?