Is AI Going to Bring the Adobe Era to an End?

Adobe's stock has declined 40% from its 2025 peak as investors worry that AI and competition from nimbler rivals like Canva and Figma are eroding its Creative Cloud competitive moat. Despite these concerns, Adobe maintains strong fundamentals with 10%+ revenue growth, $9.8B in free cash flow, and a 9% FCF yield, suggesting the market may be pricing in excessive pessimism.