As can be expected with any blockbuster acquisition, there are a lot of varying opinions out there right now on Adobe's (NASDAQ: ADBE) mammoth $20 billion buyout of privately held competitor Figma. Overall, the market is unhappy. Adobe stock slumped nearly 20% since the deal was announced, equating to a market cap loss of roughly $35 billion in just 4 market days (as of this writing, Adobe is valued at $138 billion). Clearly, investors think something is amiss.

While I plan on holding on to my small position in Adobe, for now, I'm doing so begrudgingly. Adobe has nothing short of an empire built in the fields of digital content creation and management software, but it may have underestimated the ability of tiny upstarts to disrupt it. A $20 billion price tag is proof of this error. 

For many years, investors have praised Adobe for its defensible "moat" -- its big lead in creative software and document management that peers can't crack. I own some Adobe stock because I admire how deeply embedded it is in the creative world and its steady double-digit percentage growth over the course of decades.

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Source Fool.com