Adobe Inc.

“Adobe remains an exceptional long-term software business with durable workflow switching costs, best-in-class margins, strong free cash flow, and low balance-sheet risk. The core debate is whether AI weakens its moat faster than Adobe can embed AI into the professional stack and preserve pricing power. At the current valuation, the market appears to be discounting an overly negative outcome. That makes the shares attractive for long-term investors, though not enough to justify a maximum-conviction strong buy because moat trajectory and management judgment are good rather than flawless.”