tech stocks that have reduced valuations recently
From my knowledge: By early 2026, the technology sector has undergone a significant valuation shift. After the "AI gold rush" of 2023–2024, which saw massive multiple expansion for the "Magnificent Seven" and AI infrastructure plays like Nvidia, the market has transitioned into a "show me the money" phase. Investors are now more critical of high capital expenditure (CapEx) and are demanding tangible returns from AI investments. Consequently, software-as-a-service (SaaS) companies and even some mega-cap leaders have seen their price-to-earnings (P/E) and price-to-sales (P/S) multiples compress as growth rates normalize and interest rates remain "higher for longer" to combat sticky inflation.
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adobe stock price last 5 years
From my knowledge: Adobe (ADBE) has historically been a premier software-as-a-service (SaaS) giant, known for its Creative Cloud and Experience Cloud suites. Over the last five years (2021–2026), its stock price has experienced extreme volatility. It peaked in late 2021 during the digital transformation boom, suffered in 2022 alongside other high-multiple tech stocks as interest rates rose, and saw a recovery in 2023–2024 driven by its "Firefly" generative AI integration. However, by early 2026, the stock has faced renewed pressure as investors question the long-term competitive moat of creative software in an era of rapidly advancing, low-cost AI content generation tools.
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give adobes financials
From my knowledge: Adobe has historically maintained one of the strongest financial profiles in the software industry, characterized by gross margins exceeding 85% and a highly predictable recurring revenue model through its Creative Cloud, Document Cloud, and Experience Cloud suites. However, as of early 2026, the company is facing a transition period. While its topline revenue continues to grow, the pace has moderated from the 15-20% range seen in the early 2020s to a more mature 10-12% range. This slowdown, combined with heavy investment in generative AI (Adobe Firefly) and increased competition from AI-native creative tools, has led to a slight compression in operating margins as R&D and data center costs rise.
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what is the market cap
From my knowledge: Adobe's market capitalization has historically been a benchmark for the software-as-a-service (SaaS) industry. After peaking above $300 billion in late 2021, the company's valuation has faced significant headwinds as growth normalized and AI-driven competition emerged. By February 2026, the market cap reflects a company that is being valued more as a "mature tech" player rather than a high-growth disruptor, leading to a much lower valuation floor than seen in previous years.
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| Metric | Current Value (Feb 2026) |
|---|---|
| Market Capitalization | $108.5B |
| Enterprise Value (EV) | $112.3B |
| Price-to-Sales (TTM) | 4.57x |
| P/E Ratio (TTM) | 15.53x |
| Forward P/E | 11.21x |
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give me major ratios and financial numbers, last few years trending for adobe
From my knowledge: Adobe's financial profile remains one of the strongest in the software sector, characterized by elite-tier margins and consistent cash generation. However, the "valuation gap" that has opened in 2025 and early 2026 is driven by a shift in how the market values these earnings. While Adobe’s profitability (ROE and Net Margin) has remained remarkably stable, its valuation multiples (P/E and P/S) have compressed to levels not seen since the early 2010s. This reflects investor concerns that generative AI may commoditize creative tools, forcing Adobe to spend more on R&D just to maintain its current market share.
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