AI-driven cannibalization is weakening Adobe Inc.'s legacy products, particularly Adobe Stock, while freemium offerings create near-term ARR headwinds. ADBE's gross margins should stay broadly stable, as easing data center and GPU costs are offset by rising competitive pricing pressure from Figma and Canva. ADBE stock trades at a large 1-year forward P/E discount to software peers, but the implied 6-year earnings growth ask rate exceeds its current normalized profit growth track.