1 Software Stock I'd Actually Consider Buying Amid This Sell-Off

Core Viewpoint - The rapid evolution of artificial intelligence (AI) is causing significant concern among investors regarding its potential to disrupt established software-as-a-service business models, particularly affecting popular software stocks like Adobe [1][2]. Group 1: Company Performance - Adobe's stock price has significantly declined from a 52-week high of nearly $423 to about $241, exacerbated by the announcement of CEO Shantanu Narayen's departure [2]. - In the fiscal first quarter of 2026, Adobe reported a 12% year-over-year increase in total revenue, reaching $6.4 billion, driven by a 13% rise in subscription revenue to $6.2 billion [8]. - The demand for Adobe's AI-focused products has surged, with annualized recurring revenue from these offerings more than tripling year over year [8]. Group 2: Market Perception and AI Impact - The prevailing bearish sentiment towards Adobe stems from the belief that AI will enable anyone to create high-quality images and videos, potentially diminishing the need for professional software [6]. - Despite these concerns, Adobe is recognized as the leading software provider for creative professionals, who require advanced editing and integration capabilities that AI tools can enhance rather than replace [7]. - Adobe's strategy to incorporate AI tools into its existing software is expected to increase the value of its offerings for users, aligning with the company's mission to empower creativity in the AI era [9].