Is Adobe Stock Too Cheap to Pass Up?
Key Points
Adobe's stock is down 50% over the past year, but the business keeps chugging along.
A valuation that was once stretched looks cheap by most metrics.
The question may be around Adobe's management, which is in flux at the moment.
- 10 stocks we like better than Adobe ›
Adobe (NASDAQ: ADBE) stock is down 50% over the past year, and investors think this will be one of the losers of the age of AI. But the company continues to perform well with revenue growing and free cash flow coming in. Now that the stock is trading for under 10x earnings and free cash flow, is this a deal that's too good to pass up? That's the answer I try to find in this video.
*Stock prices used were end-of-day prices of June 12, 2026. The video was published on June 15, 2026.
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Travis Hoium has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Adobe. The Motley Fool recommends the following options: long January 2028 $330 calls on Adobe and short January 2028 $340 calls on Adobe. The Motley Fool has a disclosure policy. Travis Hoium is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.
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