Top Value Investor Says Adobe Stock Is ‘Very Compelling’ Despite AI Threat

Value investor Tobias Carlisle made a contrarian case for Adobe (NASDAQ:ADBE) on a recent episode of The Investor’s Podcast, telling co-hosts Stig Brodersen and Hari Ramachandra that “I think the valuation’s very compelling” and pointing to a “big discount” and “a lot of buybacks” at the creative software giant.

Recommendation Change

Carlisle did not issue a formal recommendation change but expressed his personal view that the stock is attractive at current levels.

Analyst's Rationale

Carlisle believes Adobe is trading at a significant discount to its intrinsic value, supported by aggressive share buybacks. He argues that AI fears are overblown and that Adobe retains a strong competitive moat in creative software.

Context

Carlisle’s comments come amid a broader sell-off in Adobe shares due to AI disruption fears. Other analysts are divided, with some seeing value and others warning of competitive pressure. The stock has fallen about 20% over the past year.

What We Conclude

Carlisle’s view highlights Adobe’s strong fundamentals, but investors should weigh the potential of AI risks against the company’s market position.