Adobe's $14.64 Billion Trading Day Leads to Second Consecutive Gain, Outpacing Palantir in Market Cap

On March 25, 2025, Adobe Inc. (ADBE) saw a trading volume of $14.64 billion, marking a 28.9% decrease from the previous day. The stock price rose by 2.32%, marking the second consecutive day of gains, with a total increase of 4.23% over the past two days.

Adobe's graphics design product suite remains the industry standard, and the company has quickly adapted to the rise of AI by introducing its own generative AI software, Firefly. This move has helped Adobe maintain strong growth despite concerns about disruption from free AI image generation models. The release of the Adobe Firefly Video model in February was particularly well-received by brands, further solidifying Adobe's position in the market.

Adobe's financial performance has been robust, with the company continuing to deliver solid growth every quarter. This has led some analysts to question why Adobe's valuation is lower than that of Palantir Technologies, which has a higher market cap but lower revenue and profit levels. Palantir's market cap is currently around $200 billion, while Adobe's is approximately $169 billion. Despite Palantir's higher growth rate, Adobe's stronger financials and established market position suggest that it may be undervalued.

Adobe's price to free cash flow ratio has improved by 23.14% from its 12-month average, indicating that the stock may be undervalued relative to its cash flow generation. This, combined with Adobe's strong financial performance and market leadership, suggests that the stock could be a good investment opportunity for those looking to capitalize on the AI revolution.