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Back in 2024, on May 14, a caller on the Mad Money show asked about Adobe Inc. (NASDAQ:ADBE), concerned about its 20% decline year-to-date and underperformance relative to its price targets at the time. The caller specifically wanted to know whether to hold or sell ahead of its upcoming earnings, to which Cramer replied with:
"No no no no, it’s really the cheapest I’ve seen. And a lot of this is — it’s down 20% year — a lot of this is because [of the] belief that they weren’t able to buy this Convergent, and that they have too expensive a suite offering and they have to cut the price of the suite offering. You know Shantanu Narayen’s going to figure this one out. Now I don’t know how he’s going to figure it out. I don’t have an answer for him. But I’m betting. I’m not running Adobe, and I know that he’s a smart person, and therefore I’m backing with him. At the level of 475, give or take like 10 or 15 points. So there I go.”
Cramer’s support for Adobe was misplaced, with the stock falling 16.07% since he urged investors to back the CEO.
Adobe Inc. (NASDAQ:ADBE) is a multinational software company known for its Creative Cloud suite, powering digital content creation across design, marketing, and publishing. Addressing the company again in April, Cramer highlighted some possible reasons for the stock’s fall, saying:
"Adobe, what a great company. Its stock is down almost 35% from its high set last year […] Adobe has come up with a few AI tools of its own headlined by Adobe Firefly - it's a Lamborghini, wow! It’s a really impressive technology. But the problem is OpenAI can also do these things too. So is Adobe being hurt or helped by AI? It's really hard to say. […] I'm not sure I'd stick my neck out for Adobe with its generative AI threats."
While we acknowledge the potential of ADBE to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than ADBE and that has 100x upside potential, check out our report about this cheapest AI stock.
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Disclosure: None.
