ClearBridge Investments sold Adobe due to concerns over market saturation and competition.

ClearBridge Investments released its second quarter 2025 investor letter, noting growth stocks rebounded from tariff uncertainty. Technology and communication services sectors led, with the S&P 500 returning 10.9% and the NASDAQ Composite soaring 17.7%. The Russell 1000 Growth Index rose 17.8%, outperforming the Value Index, though the strategy underperformed its benchmark.

In the letter, ClearBridge highlighted Adobe Inc. (ADBE), a technology company whose shares lost 34.41% over the last 52 weeks. Adobe Inc. (ADBE) closed at $379.31 per share on July 3, with a market cap of $160.903 billion. The company was recently exited from the fund’s portfolio due to concerns about market saturation and competitive risks.

Adobe Inc. (ADBE) is in 13th place on the list of 30 Most Popular Stocks Among Hedge Funds. In the fiscal second quarter of 2025, Adobe Inc. (ADBE) reported revenue of $5.87 billion, showing 11% year-over-year growth. While it has potential, the fund believes AI stocks offer greater returns in a shorter time frame. Check out their report on an undervalued AI stock for potential gains.

Read more at Yahoo Finance: Clearbridge Large Cap Growth Strategy Sold Adobe (ADBE) Due to Concerns Over Market Penetration and Competition