What Makes Adobe (ADBE) an Attractive Opportunity?

Core Insights - Bristlemoon Global Fund reported a return of -6.2% for the December quarter of 2025, with a cumulative return of 11.9% since inception [1] - The fund's performance was influenced by market trends favoring perceived AI winners while undervalued stocks labeled as AI losers declined further [1] Company Analysis: Adobe Inc. (NASDAQ:ADBE) - Adobe Inc. experienced a one-month return of -4.90% and a 52-week decline of 18.25%, closing at $333.95 per share with a market capitalization of $1,141.92 billion on January 9, 2026 [2] - The fund initiated a position in Adobe at a valuation of 15x earnings, the lowest in over 13 years, amidst market pessimism regarding AI's impact on its creative suite [3] - Despite bearish views, Adobe's financial results remain strong, with revenue growth at double-digit rates and earnings growth in the mid-teens percentage [3] - Adobe's revenue for the financial year 2025 was reported at $23.77 billion, reflecting an 11% year-over-year growth [4] - Adobe is positioned to benefit from the Jevons paradox, where reduced costs of generating content due to AI could lead to increased demand for digital content and related tools [3]