Do You Believe in the Growth Potential of Adobe (ADBE)?

GreensKeeper Asset Management, an investment management company, released its third-quarter 2025 investor letter. A copy of the letter can be downloaded here. The Value Fund has ended the quarter with a +4.0% gain, taking the YTD return to +0.2% net of fees and expenses. The US dollar continued to pose a challenge, negatively impacting performance by -3.7% so far this year. The year’s market rally was primarily led by AI, crypto, and speculation. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2025.

In its third-quarter 2025 investor letter, GreensKeeper Asset Management highlighted stocks such as Adobe Inc. (NASDAQ:ADBE). Adobe Inc. (NASDAQ:ADBE) is a technology company that operates through Digital Media, Digital Experience, and Publishing and Advertising. The one-month return of Adobe Inc. (NASDAQ:ADBE) was 11.36%, and its shares lost 20.46% of their value over the last 52 weeks. On December 16, 2025, Adobe Inc. (NASDAQ:ADBE) stock closed at $347.89 per share, with a market capitalization of $147.575 billion.

GreensKeeper Asset Management stated the following regarding Adobe Inc. (NASDAQ:ADBE) in its third quarter 2025 investor letter:

"We made one new purchase in the quarter: Adobe Inc. (NASDAQ:ADBE). ADBE is a global software company specializing in creative content, digital marketing, and document management. ADBE’s stock has sold off amid concerns that AI products (including GOOG’s Nano Banana) pose a threat to the company’s core Photoshop and Illustrator franchises. Our view is that ADBE is well-positioned to integrate AI products into its Creative Cloud suite, and that its tools have higher switching costs than the market is giving the company credit for."

Adobe Inc. (NASDAQ:ADBE) is in the 13th position on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 88 hedge fund portfolios held Adobe Inc. (NASDAQ:ADBE) at the end of the third quarter, compared to 104 in the previous quarter.  For the financial year 2025, Adobe Inc. (NASDAQ:ADBE) reported revenue of $23.77 billion, representing a 11% year-over-year growth. While we acknowledge the potential of Adobe Inc. (NASDAQ: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.

In another article, we covered Adobe Inc. (NASDAQ:ADBE) and shared the list of best trending AI stocks on Wall Street. Aristotle Atlantic Large Cap Growth Strategy sold its stake in Adobe Inc. (NASDAQ:ADBE) in Q3 2025. In addition, please check out our hedge fund investor letters Q3 2025 page for more investor letters from hedge funds and other leading investors.

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