Trading at Multi-Year Lows, Is Adobe's Stock a Bargain Buy Right Now?

Core Insights - Adobe's stock has declined by 25% this year, reaching its lowest levels since 2023, presenting a potential buying opportunity for long-term investors [1] - The current P/E multiple for Adobe is around 21, significantly lower than the previous year's premium of over 40, indicating investor concerns about future growth prospects [3] - Despite competition from AI and design software, Adobe's sales growth remains above 10%, consistent with its average growth rate over the past few years [6] Company Performance - Adobe's prominent software titles, such as Photoshop and Acrobat, are essential for many professionals, but AI has intensified competition in the market [4][8] - The stock trades at a P/E multiple below the S&P 500 average, suggesting potential undervaluation [8] - There are concerns that cancellations of subscriptions may not immediately reflect in earnings, as Adobe has a history of making it difficult for users to cancel subscriptions [9]