Adobe Stock Dropped Yesterday, Should You Buy It Now?

Core Insights - Adobe's stock (NASDAQ: ADBE) saw a significant decline of 6.1% on October 29, 2025, despite multiple AI-focused product announcements at its annual MAX conference, indicating investor concerns about the long-term competitive impact of AI on the business [2][3] - The stock has experienced a substantial decline of 60.0% from its peak of $688.37 on November 19, 2021, to $275.20 on September 30, 2022, underperforming the S&P 500, which had a peak-to-trough drop of 25.4% during the same period [7] - Adobe's stock has not yet returned to its pre-crisis peak, with the highest value since then being $634.76 on February 4, 2024, and it currently trades at $337.86 [7] Stock Performance Analysis - During the 2020 COVID-19 pandemic, ADBE stock declined by 25.6% from a peak of $383.28 on February 19, 2020, to $285.00 on March 12, 2020, while the S&P 500 experienced a peak-to-trough decline of 33.9% [9] - ADBE stock fully recovered to its pre-crisis peak by May 20, 2020, demonstrating resilience during that downturn [9] - In the 2018 correction, ADBE stock dropped 25.5% from a peak of $275.49 on October 1, 2018, to $205.16 on December 24, 2018, compared to a 19.8% decline for the S&P 500, and it also fully recovered by April 23, 2019 [9] Investment Strategy Considerations - Investing in a single stock like ADBE can be risky, and a diversified strategy, such as the Trefis High Quality Portfolio, is recommended to mitigate stock-specific risk while providing upside potential [4] - The Trefis High Quality Portfolio has consistently outperformed its benchmark, which includes the S&P 500, S&P mid-cap, and Russell 2000 indices, indicating a strategy that provides superior returns with reduced risk [8]