Projected Target Price for QQEW Analyst: $156
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Sep 22 2025
0mins
Should l Buy ADBE?
Source: NASDAQ.COM
ETF Target Price Analysis: The First Trust NASDAQ-100 Equal Weighted Index Fund ETF (QQEW) has an implied analyst target price of $155.80, indicating an 11.20% upside from its recent trading price of $140.10.
Notable Holdings with Upside Potential: Key underlying holdings such as DexCom Inc (DXCM), Adobe Inc (ADBE), and GlobalFoundries Inc (GFS) show significant upside potential, with target prices suggesting increases of 51.97%, 28.90%, and 23.94% respectively from their current prices.
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Analyst Views on ADBE
Wall Street analysts forecast ADBE stock price to rise
24 Analyst Rating
17 Buy
6 Hold
1 Sell
Moderate Buy
Current: 262.500
Low
310.00
Averages
454.52
High
660.00
Current: 262.500
Low
310.00
Averages
454.52
High
660.00
About ADBE
Adobe Inc. is a global technology company. The Company's products, services and solutions are used around the world to imagine, create, manage, deliver, measure, optimize and engage with content across surfaces and fuel digital experiences. Its segments include Digital Media, Digital Experience, and Publishing and Advertising. The Digital Media segment is centered around Adobe Creative Cloud and Adobe Document Cloud, which include Adobe Express, Adobe Firefly, Photoshop and other products, offering a variety of tools for creative professionals, communicators and other consumers. The Digital Experience segment provides an integrated platform and set of products, services and solutions through Adobe Experience Cloud. The Publishing and Advertising segment contains legacy products and services. In addition, its Adobe GenStudio solution allows businesses to simplify their content supply chain process with generative artificial intelligence (AI) capabilities and intelligent automation.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Adobe Faces Challenges and Opportunities in the Age of AI
- Stock Decline: Since the launch of ChatGPT in November 2022, Adobe's stock has fallen by 21%, reflecting market concerns that AI content creation technologies may render its services obsolete, leading to diminished investor confidence and impacting the company's market capitalization.
- Strong Financial Performance: Despite challenges, Adobe reported record revenue of $23.77 billion for fiscal year 2025, an 11% year-over-year increase, with net income reaching $7.13 billion, showcasing sustained growth potential in its Creative Cloud, Document Cloud, and Experience Cloud segments.
- Share Buyback Strategy: Adobe has repurchased over 70 million shares since 2022, and although there was a slight slowdown in buybacks in 2023, this strategy is significant for a company with 410.5 million shares outstanding, aiming to enhance earnings per share by reducing the number of shares in circulation.
- AI Integration Progress: In its Q4 earnings report, Adobe noted that over 70% of Adobe Experience Platform customers are utilizing the AI Assistant, and the number of clients generating over $10 million in annual recurring revenue grew by 25% year-over-year, indicating that the company's innovations in AI are enhancing customer satisfaction and engagement.
See More
AI Boom Could Disrupt $3.5 Trillion Credit Markets
- Rising Default Risks: UBS analyst Matthew Mish anticipates that leveraged loans and private credit markets could see $75 billion to $120 billion in new defaults by year-end, reflecting the pressure AI transformation places on companies, particularly software and data services firms owned by private equity.
- Delayed Market Reaction: Mish notes that the market has been slow to react to the rapid advancements in AI technology, leading investors to reassess credit risks, especially after software firms were hit hard, indicating that credit markets may be the next area affected.
- Credit Crunch Risks: Mish warns that if the pace of AI transition accelerates, default rates could double, potentially triggering a credit crunch in loan markets, affecting funding channels and causing broader economic repercussions.
- Industry Classification Impact: Mish categorizes companies into three groups, indicating that those creating foundational large language models like Anthropic and OpenAI may emerge as winners, while private equity-owned software firms with high debt levels face greater risks, highlighting a reshuffling of winners and losers within the industry.
See More
Logistics Stocks Hit by AI Fear Trade
- Logistics Stocks Plummet: Logistics stocks faced significant declines on Thursday due to the new tool SemiCab from AI firm Algorhythm Holdings, with C.H. Robinson and RXO both dropping nearly 20%, highlighting market fears surrounding AI's impact.
- Real Estate Market Turmoil: The sell-off in commercial real estate companies continued on Thursday, with CBRE's stock declining by 0.6%, reflecting growing investor concerns about AI disruption, which could lead to a long-term decline in market confidence.
- Software Stock Volatility: Following a historic sell-off, software stocks were again affected on Thursday, with Palantir Technologies down 1.5%, indicating high uncertainty in the market regarding AI's potential effects, which may prompt investors to reassess their portfolios.
- Investor Strategy Adjustments: UBS strategists noted that the latest advancements in AI validate its transformative potential, recommending that investors diversify across sectors and geographies to mitigate the market fluctuations caused by AI.
See More
Investors Concerned as Software Market Faces Turmoil
- Market Turmoil: Investors are perplexed by the current market environment, particularly in the software sector, where AI concerns have triggered a sell-off dubbed 'Software-mageddon,' leading to significant declines in major software companies' stock prices and impacting investor confidence.
- Tech Research Insights: Dan Ives from Wedbush Securities highlights that the current market behavior reflects heightened sensitivity to disruptive technologies, with unprecedented structural sell-offs seen in companies like Salesforce, Service Now, Oracle, and Microsoft, indicating market instability.
- Capital Expenditure Outlook: Despite the substantial pullback in software stocks, Ives remains optimistic about the bull thesis for tech and AI, forecasting that approximately $670 billion in capital expenditures during the upcoming earnings season will drive a recovery in the tech sector, particularly with video chip spending yielding an 8 to 10 times multiplier effect.
- Investment Opportunities: Ives believes that the current software sell-off represents a generational opportunity for investors to acquire shares in core enterprise software companies like Salesforce and Service Now, as they remain the preferred choice for enterprise customers despite facing competitive pressures at the edges.
See More
AI Concerns Trigger Sell-Off in Logistics and Real Estate Stocks
- Logistics Stocks Plummet: The introduction of Algorhythm Holdings' new tool SemiCab led to a sell-off in logistics stocks on Thursday, with C.H. Robinson and RXO both dropping 20%, indicating heightened market fears regarding AI disruption that could undermine industry confidence.
- Real Estate Market Turmoil: Commercial real estate firm CBRE suffered nearly an 8% loss during Thursday's sell-off and continued to decline by 0.6% on Friday, reflecting investor unease about the market outlook under AI's influence, which may lead to capital outflows and financing challenges.
- Software Stock Volatility: Despite a historic sell-off last week, software stocks faced renewed pressure on Thursday, with Palantir Technologies down 1.5%, highlighting market concerns over AI's impact that could affect future investment decisions.
- Investor Strategy Adjustments: UBS strategists noted that the latest advances in AI validate its monetization potential, recommending investors diversify across sectors and geographies to navigate the transformative changes brought by AI, reflecting a reassessment of future investment portfolios.
See More
Investment Opportunities Amid Software Stock Slump
- Current Software Market: Despite the Dow Jones Industrial Average surpassing 50,000 and the S&P 500 gaining at least 16% in six of the last seven years, the iShares Expanded Tech-Software Sector ETF is nearly 28% below its all-time high, indicating that software stocks are in a bear market, presenting opportunities for value investors.
- Salesforce Growth Potential: Salesforce's Agentforce AI platform generated over $500 million in annual recurring revenue in Q3, up 330% year-over-year, and despite AI competition concerns, its leadership in the CRM market and strategic acquisition capabilities sustain high growth, with a forward P/E ratio of just 14.8, representing a 52% discount to its historical average.
- Adobe's Performance Recovery: Adobe's Digital Media segment achieved $19.2 billion in annual recurring revenue for FY 2025, an 11.5% increase, and despite fears surrounding generative AI, its strong cash flow and share buyback program (30.8 million shares in FY 2025) indicate financial health, with a forward P/E of 10.1, 61% below its historical average.
- Okta's Rising Security Demand: Okta's RPO increased 17% year-over-year to nearly $4.3 billion in Q3, as the shift of enterprise data to the cloud boosts cybersecurity demand; its AI-driven platform provides identity authentication and application authorization, and while facing AI competition, its forward P/E of 24 shows relative attractiveness.
See More
Adobe Faces Challenges and Opportunities in the Age of AI
- Stock Decline: Since the launch of ChatGPT in November 2022, Adobe's stock has fallen by 21%, reflecting market concerns that AI content creation technologies may render its services obsolete, leading to diminished investor confidence and impacting the company's market capitalization.
- Strong Financial Performance: Despite challenges, Adobe reported record revenue of $23.77 billion for fiscal year 2025, an 11% year-over-year increase, with net income reaching $7.13 billion, showcasing sustained growth potential in its Creative Cloud, Document Cloud, and Experience Cloud segments.
- Share Buyback Strategy: Adobe has repurchased over 70 million shares since 2022, and although there was a slight slowdown in buybacks in 2023, this strategy is significant for a company with 410.5 million shares outstanding, aiming to enhance earnings per share by reducing the number of shares in circulation.
- AI Integration Progress: In its Q4 earnings report, Adobe noted that over 70% of Adobe Experience Platform customers are utilizing the AI Assistant, and the number of clients generating over $10 million in annual recurring revenue grew by 25% year-over-year, indicating that the company's innovations in AI are enhancing customer satisfaction and engagement.
See More
AI Boom Could Disrupt $3.5 Trillion Credit Markets
- Rising Default Risks: UBS analyst Matthew Mish anticipates that leveraged loans and private credit markets could see $75 billion to $120 billion in new defaults by year-end, reflecting the pressure AI transformation places on companies, particularly software and data services firms owned by private equity.
- Delayed Market Reaction: Mish notes that the market has been slow to react to the rapid advancements in AI technology, leading investors to reassess credit risks, especially after software firms were hit hard, indicating that credit markets may be the next area affected.
- Credit Crunch Risks: Mish warns that if the pace of AI transition accelerates, default rates could double, potentially triggering a credit crunch in loan markets, affecting funding channels and causing broader economic repercussions.
- Industry Classification Impact: Mish categorizes companies into three groups, indicating that those creating foundational large language models like Anthropic and OpenAI may emerge as winners, while private equity-owned software firms with high debt levels face greater risks, highlighting a reshuffling of winners and losers within the industry.
See More
Logistics Stocks Hit by AI Fear Trade
- Logistics Stocks Plummet: Logistics stocks faced significant declines on Thursday due to the new tool SemiCab from AI firm Algorhythm Holdings, with C.H. Robinson and RXO both dropping nearly 20%, highlighting market fears surrounding AI's impact.
- Real Estate Market Turmoil: The sell-off in commercial real estate companies continued on Thursday, with CBRE's stock declining by 0.6%, reflecting growing investor concerns about AI disruption, which could lead to a long-term decline in market confidence.
- Software Stock Volatility: Following a historic sell-off, software stocks were again affected on Thursday, with Palantir Technologies down 1.5%, indicating high uncertainty in the market regarding AI's potential effects, which may prompt investors to reassess their portfolios.
- Investor Strategy Adjustments: UBS strategists noted that the latest advancements in AI validate its transformative potential, recommending that investors diversify across sectors and geographies to mitigate the market fluctuations caused by AI.
See More
Investors Concerned as Software Market Faces Turmoil
- Market Turmoil: Investors are perplexed by the current market environment, particularly in the software sector, where AI concerns have triggered a sell-off dubbed 'Software-mageddon,' leading to significant declines in major software companies' stock prices and impacting investor confidence.
- Tech Research Insights: Dan Ives from Wedbush Securities highlights that the current market behavior reflects heightened sensitivity to disruptive technologies, with unprecedented structural sell-offs seen in companies like Salesforce, Service Now, Oracle, and Microsoft, indicating market instability.
- Capital Expenditure Outlook: Despite the substantial pullback in software stocks, Ives remains optimistic about the bull thesis for tech and AI, forecasting that approximately $670 billion in capital expenditures during the upcoming earnings season will drive a recovery in the tech sector, particularly with video chip spending yielding an 8 to 10 times multiplier effect.
- Investment Opportunities: Ives believes that the current software sell-off represents a generational opportunity for investors to acquire shares in core enterprise software companies like Salesforce and Service Now, as they remain the preferred choice for enterprise customers despite facing competitive pressures at the edges.
See More
AI Concerns Trigger Sell-Off in Logistics and Real Estate Stocks
- Logistics Stocks Plummet: The introduction of Algorhythm Holdings' new tool SemiCab led to a sell-off in logistics stocks on Thursday, with C.H. Robinson and RXO both dropping 20%, indicating heightened market fears regarding AI disruption that could undermine industry confidence.
- Real Estate Market Turmoil: Commercial real estate firm CBRE suffered nearly an 8% loss during Thursday's sell-off and continued to decline by 0.6% on Friday, reflecting investor unease about the market outlook under AI's influence, which may lead to capital outflows and financing challenges.
- Software Stock Volatility: Despite a historic sell-off last week, software stocks faced renewed pressure on Thursday, with Palantir Technologies down 1.5%, highlighting market concerns over AI's impact that could affect future investment decisions.
- Investor Strategy Adjustments: UBS strategists noted that the latest advances in AI validate its monetization potential, recommending investors diversify across sectors and geographies to navigate the transformative changes brought by AI, reflecting a reassessment of future investment portfolios.
See More
Investment Opportunities Amid Software Stock Slump
- Current Software Market: Despite the Dow Jones Industrial Average surpassing 50,000 and the S&P 500 gaining at least 16% in six of the last seven years, the iShares Expanded Tech-Software Sector ETF is nearly 28% below its all-time high, indicating that software stocks are in a bear market, presenting opportunities for value investors.
- Salesforce Growth Potential: Salesforce's Agentforce AI platform generated over $500 million in annual recurring revenue in Q3, up 330% year-over-year, and despite AI competition concerns, its leadership in the CRM market and strategic acquisition capabilities sustain high growth, with a forward P/E ratio of just 14.8, representing a 52% discount to its historical average.
- Adobe's Performance Recovery: Adobe's Digital Media segment achieved $19.2 billion in annual recurring revenue for FY 2025, an 11.5% increase, and despite fears surrounding generative AI, its strong cash flow and share buyback program (30.8 million shares in FY 2025) indicate financial health, with a forward P/E of 10.1, 61% below its historical average.
- Okta's Rising Security Demand: Okta's RPO increased 17% year-over-year to nearly $4.3 billion in Q3, as the shift of enterprise data to the cloud boosts cybersecurity demand; its AI-driven platform provides identity authentication and application authorization, and while facing AI competition, its forward P/E of 24 shows relative attractiveness.
See More
