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firefly app is trash; Try it yourself on IOS/Android

- is bloated company with poor execution and talent density. It is floating around because of legacy tools like pdf, image editing capability.

- With advancement in AI, Adobe has consistently disappointed investors.
- Firefly buzz is overhyped, Tried the app and quality of generated content is the worst. Go and try it yourself.

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- Market has given so many chances to but it has consistently failed to deliver on expectations.
- This company needs serious restructuring of its company to better cut cost in business segment where it's underperforming and start investing in AI talent otherwise this company will get rekt

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Why buyback doesn't excite me?

- For , they have cash in hand which they are using to buyback stocks but it is not a good use of money as I believe they are short sighted and pleasing investors.

- Main threat is actually competition like Canva , Figma eating their lunch. Despite, having smaller AI investment Canva & Figma has better talent density which allows them to dominate and disrupt boomer company.

- On top of that, Google's Gemini models are good for image/video editing and generation.
- Open AI sora is one of the best in the game.
- I find X/Twitter Grok having a better image generation capability than Adobe Firefly despite adobe has lot of proprietary data.

- is denying that they don't use customers' data for training but I suspect they do or would eventually do because they are losers in the AI race.

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- Only thing which would bring back in the game is reducing operational expense, make it leaner and invest in AI talent by hiring aggressively.

- Using cash in hand in acquiring smaller startups instead of using to buyback stocks so that position themselves for the long term

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The shares were downgraded from Neutral by Rothschild & Co Redburn analyst Omar Sheikh. He also dropped the target price to $280 apiece from $420 in a research note Wednesday, arguing that generative artificial intelligence tools are eroding Adobe's advantages in content creation software.

My price target i.e fair value is $250-280 as well

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- FIGMA filed for an IPO which is way better tool for designer than what
offers. reference: figma.com/blog/s1-public/

- Canva is yet to join the party to smack
azz!

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- I would rather buy figma when it IPOs instead of $ADBE.
- is not cheap. It is trading at P/E > 25 for < 10% revenue growth.
- Company is spending money/free cash flow in buying back shares which will end up being a bad investment.
- wish they had spent this amount on research and development or acquiring startups. It would have messed up balance sheet in the short term but should have help Adobe to compete in Gen AI space.
- Golden goose of a company of last decade is getting decimated by their outdated tools and shady subscription practices.

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- FIGMA is IPOing on 31st July 2025. Let's see how reacts to figma IPO

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under pressure, Investors flocking to FIGMA very soon for 40%+ growth yoy!

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