Adobe Stock Down 14% to Start 2026: Why It's a Bargain

Adobe stock has declined 14% to start 2026 amid concerns over the impact of generative AI. However, the company's financial results show strong momentum in its AI products, including Adobe Express and Firefly. Adobe's Creative Cloud remains the industry standard for creative professionals, and the company has seen a 11.5% YoY increase in annual recurring revenue in 2025, with management expecting another year of double-digit growth in 2026. Despite the rise of competing AI tools, Adobe's competitive moat and integration of generative AI features into its software make it an attractive investment opportunity.