Jim Cramer on Adobe: "Organic Growth is What We Want, Not Price-Driven Growth"

Adobe Inc. (NASDAQ:ADBE) is one of the stocks Jim Cramer offered insights on. Inquiring about the stock, a caller mentioned that it looks like the stock is suffering, and Cramer commented:

“Tough… very tough. Adobe, Adobe made that quarter, but I think there were, a lot of that was price raising, and I want to see organic growth. If you want to know like… if you want to compare that with something, compare it to Workday, which we had on the other day, and I think that they were doing it by doing new deals, not at higher prices, but just a lot of new deals. Organic growth is what we want, not price-driven growth.”

Adobe Inc. (NASDAQ:ADBE) delivers creative, document, and customer experience solutions through its platforms. The company’s solutions include content creation, publishing, analytics, marketing, e-commerce, and digital advertising. During the September 5 episode, Cramer said that the stock has “fallen dramatically out of favor,” as he remarked:

“However, I am not sure about the stock of a one-time fave of mine, Adobe, which has fallen dramatically out of favor, not unlike Salesforce, which reported a big upside earnings surprise this week, but it meant nothing for the stock ostensibly because it didn’t lift guidance enough, but more likely because the Wall Street fashion show has turned against their software as a service business model like Adobe has. Why? Because money managers are under the impression that this kind of model is vulnerable to artificial intelligence competition. Lost in the shuffle, Adobe’s got the best product. I no longer think that may be enough to propel the stock higher.”

While we acknowledge the potential of ADBE as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

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