Adobe's Moat Is Being Deeply Misunderstood. Fears Are Well Overcooked
Adobe (ADBE) trades at a stunningly low forward earnings multiple as compared to software peers, reflecting deep market skepticism despite resilient earnings and sector-leading margins. ADBE is expected to maintain free cash flow margins close to 40% and is integrating AI quickly, including partnerships with OpenAI and other leading AI models. AI disruption fears have driven ADBE's valuation to a >50% discount versus software peers, yet its business model and profitability remain incredibly robust.
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