Joel R Mogy Investment Counsel Dumps $7.5 Million Worth of Adobe (NASDAQ: ADBE) Shares: Is the Stock a Sell?

Core Insights - Joel R Mogy Investment Counsel (JMIC) sold 20,929 shares of Adobe during Q3 2025, valued at approximately $7.51 million based on the average price for that quarter [1][2] - Post-sale, JMIC's stake in Adobe is now 50,664 shares, representing 0.98% of its $1.83 billion reportable U.S. equity AUM, down from 1.60% in the previous period [2][3] Company Overview - Adobe reported a total revenue of $23.18 billion and a net income of $6.96 billion for the trailing twelve months (TTM) [4] - As of October 15, 2025, Adobe's stock price was $330.63, reflecting a one-year decline of 34.9% [4] Business Model - Adobe operates a cloud-based, subscription-driven business model, generating revenue primarily through recurring subscription services [5] - The company serves a diverse clientele, including content creators, marketers, enterprises, and creative professionals globally [5][6] Market Position and Performance - Adobe's stock has decreased by 52% from its all-time high, raising concerns about its long-term future [9] - The company has experienced an 11% growth in sales over the past year, with strong professional use cases for its video capabilities [11] Competitive Landscape - Adobe is currently viewed as a battleground stock in the artificial intelligence (AI) sector, with market uncertainty regarding whether AI advancements will enhance or disrupt its creative operations [10] - The launch of OpenAI's Sora 2 model poses potential competition for Adobe's video editing and software businesses [10] Valuation - Trading at 15 times free cash flow, Adobe may present a significant value investment opportunity at its current price [12]