Jim Cramer Discusses Competition Faced by Adobe

Adobe Inc. (NASDAQ:ADBE) is one of the stocks Jim Cramer talked about. When an Investing Club member asked Cramer what had been going on with the stock, he commented:

“Alright, so, I’m going to have to just, sometimes you have to just say someone knows this better than I do. There’s a fellow by the name of Ben Reitzes… He has been coaching me, just saying, listen, understand that AI is eating software. This is a software-as-a-service company. In other words, when you buy them, when you buy Adobe, you get certain seats, you bring them in. It’s a very costly program. It is unbelievably good for graphics, okay? But there’s a new company called Figma that’s come in, and they do a lot of stuff that Adobe does for a little bit cheaper. There’s Canva, which does it for incredibly cheap. So I think that what’s really happened is, is that others have come into their market with a cheaper product that a lot of people feel is just as good, that has artificial intelligence in it, and they can’t maintain their price. So far, their price has been able to be maintained, but that’s the big worry about Adobe. And I have no answer for Adobe. None. I just don’t.”

Adobe Inc. (NASDAQ:ADBE) provides software and cloud solutions for creativity, digital documents, and customer experience management.

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Disclosure: None. This article is originally published at Insider Monkey.