Adobe stock falls due to Q4 miss and AI concerns, but long-term potential remains positive.

From Nasdaq: 2025-01-09 08:47:57

Getty Images and Shutterstock have agreed to merge, creating a $3.7 billion company. Getty shareholders will own 55% of the new entity, with Craig Peters as CEO. Investors reacted positively, with GETY stock up 25% and SSTK stock up 14%. The merger aims to save $150-200 million annually and compete with Adobe.

Adobe’s stock has fallen due to a Q4 miss and concerns about AI progress. Revenue rose 11% to $21.5 billion in 2024, driven by digital media and document cloud sales. ADBE stock returns have been volatile, with a 13% gain in 2021 and a 25% loss in 2024. Consider a High-Quality Portfolio for smoother returns.

ADBE stock is currently trading at a discount, with potential for long-term gains. Despite competition in stock images and slow AI revenue growth, Adobe’s valuation appears attractive. Investors should consider buying during the dip for robust returns. Trefis’ High-Quality Portfolio has outperformed the S&P 500.

In January 2025, ADBE stock is down 3% month-to-date and 28% since the start of 2024. However, the total return from 2017-2025 is 332%. Comparatively, the S&P 500 has a 1% return in January 2025 and 25% since 2024, with a total return of 167%. Trefis’ Reinforced Value Portfolio has also shown strong returns.



Read more at Nasdaq: What’s Next For Adobe Stock?