#FIGMA STOCK FULL#
#FIGMA STOCK SOFTWARE#

Even the most negative commentators have acknowledged that that Figma is worth something. Its market cap declined by more than $47 billion in the wake of the announcement. One thing of note: Adobe is spending $20 billion to acquire Figma.

#FIGMA STOCK FULL#

The problems of this company are on full view although there are still more buy than sell ratings, and analyst price targets, for what they might be worth, range from a low of $310 to a high.well that $546 number has probably not been refreshed recently. In the last 3 months there have been no fewer than 8 analyst downgrades. It isn't an easy case to make, of course, and it is one that a flock of covering analysts have chosen not to make. That said, the question is, can a contrarian case be made for investing in Adobe at this time. Other than some kind of dead count bounce, I think in the short term it unlikely that Adobe shares can overcome sentiment and a market environment utterly hostile to what it perceives to be risk. While I believe that the valuation implosion accounts for the risks and uncertainties attendant with such a large and highly valued acquisition, negative sentiment still rules. Holding Adobe shares currently is an exercise in risk and uncertainty. 22, the AAII reported that negative investor sentiment had reached record levels. So, what next? Are Adobe shares in the process of bottoming? How much more pain might be involved in continuing to hold these shares? The market environment remains toxic to growth, and to anything involving perceived risk and uncertainty. I was hardly prescient far, far too early with those concerns. And to an extent, I was concerned about the level of complacency on the part of investors and commentators about the durability of demand growth in the company's creative cloud. I was concerned about the valuation of the shares a long, time ago, even prior to their ascent to the stratosphere. It's been some years now since I owned Adobe shares. While Adobe's business, despite the macro-economic turbulence has shown some demand resilience, its stock price has been a different matter. So, the shares are now down by almost 50% so far this year, and are down by 59% since they made an all-time high 10 months ago. But even before that implosion, the shares had already lost about 30% of their value since the start of the year. As many readers are aware, the shares of Adobe lost 25% in the wake of the announcement and have seen no bounce since that point. Adobe shares have been pummeled and the judgement of its management has been questioned in the wake of both its quarterly earnings review and its guidance, but more importantly due to its planned $20 billion acquisition of Figma. Recommending Adobe ( NASDAQ: ADBE) shares is an even more extreme contrarian undertaking. And there is nothing on the immediate horizon that suggests that this sentiment will not continue for some time. The preponderance of sentiment is focused on Fed dot plots, with a perspective that any kind of investment that involves future growth needs to sell at a highly compressed valuation. And they have completely thrown out any consideration of the super cycle that digital transformation and AI is providing demand. They are terrified about negative estimate revisions.

#FIGMA STOCK SOFTWARE#

Investors, with a dearth of evidence, or historical analogs are convinced that somehow the business outlook for software companies is highly correlated to the business cycle. Recommending any software names these days is a contrarian undertaking. Tim Boyle/Getty Images News What are the investment merits of Adobe at this point?

Figma stock