I like the idea. Not just from Adobe, but software stocks in general. I do think the market has beat a lot of them up. Adobe, Salesforce, Constellation Software, ServiceNow, etc.
That said, there is risk here. I don't necessarily believe the markets are 100% efficient, there can be pricing discrepancies. But the market doesn't just sell off a lot of these stocks for zero reason. AI does have the chance to disrupt some of these businesses and forward growth could potentially be slower.
If you're looking at Adobe from the standpoint of its previous highs during COVID, this is likely unsustainable. Not to say that those prices cannot be achieved, but the valuation multiples are likely not going to go back to that amount. This is because Adobe just isn't growing at the same rate it was.
I view these software platforms as a good contrarian option running into 2026. Just know a few things. First, it's not guaranteed. AI could disrupt Adobe's growth. In this instance, best case scenario you'd get a situation like Paypal, where the stock has been flat for years trying to fight through it. Worst case scenario, stock falls even further.
Secondly, the market can misprice a stock like this based on sentiment for years. Don't expect to buy Adobe and be in the green big in 6 months, even at the end of 2026. If you're going to enter this one, a quick turnaround would be great, and is possible, but the likely scenario is it takes a while for the market to regain confidence, as AI is an unknown piece of tech.