If you’re a current investor in Adobe Inc (NASDAQ: ADBE) that just keeps track of the stock ticker and the news, you might be worried a bit right now. It’s been called a falling knife, and with good reason:
That’s a rather sheer cliff.
Why did it drop so sharply? AI, or rather the perception that ADBE’s efforts in the AI market and products were not doing well yet in monetization. So despite other good news recently, there was a selloff resulting in the chart above. Additionally, guidance was softer than what many would hope for.
So, it is now in “falling knife” territory, but does ADBE deserve that?
Here’s some food for thought: according to our Zen Ratings system, ADBE holds a rating of B, which means it is among the top 20% of stocks we track. On average, stocks with a Zen Rating of “B” have enjoyed annualized returns of +19.88%, well above the market average. Breaking it down a bit further:
Analysts agree:
Reasons to Consider ADBE:
However, ADBE is currently a falling knife, so proceed with caution.
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