Adobe Ends Its Pursuit of Figma -- Is Adobe Stock a Buy for 2024?
Numerous regulatory objections were piling up for 's (NASDAQ: ADBE) blockbuster $20 billion acquisition of fast-growing start-up Figma. And it's now official. With "no clear path" to satisfying regulatory concerns in Europe and the U.K., Adobe is walking away from the Figma tie-up.
To be clear, Adobe is going to be absolutely fine. It's still in pole position in all things creative software. But after an epic year of AI-fueled growth comes to a close, Adobe is facing tougher growth comparisons without the inclusion of its hoped-for Figma prize. Is the stock a buy for 2024 anyway?
In September 2022, Adobe said it would acquire Figma for $20 billion, half in new stock and half in cash (much of that cash funded with new debt). It was a sky-high valuation for Figma, which was on track to reach $400 million in annualized sales at the end of 2022, double that of 2021. But with lots of young creators flocking to Figma's collaborative design software, it seemed clear Adobe wanted to purchase Figma to stave off a potential future threat to its creative software empire.
Source Fool.com
Adobe Inc. Stock
The stock is one of the favorites of our community with 60 Buy predictions and 2 Sell predictions.
With a target price of 588 € there is a positive potential of 21.98% for Adobe Inc. compared to the current price of 482.05 €.
