$Adobe(ADBE)$   Adobe's stock has tumbled from a high of about $688 per share in November 2021 to roughly $286 per share today. As I said, that's a staggering 58% decline in less than a year.

Now, it's no secret that markets fluctuate. But for a stock to fall that far in a relatively short period... you might think something is seriously wrong with the company.

That doesn't seem to be the case with Adobe, though. The recurring revenue from its Creative Cloud is a great quality. It's a telltale sign of a fundamentally strong business.

And earlier this month, Adobe announced plans to buy design platform Figma...

To me, that seems like a good idea. Adobe is taking advantage of the tough environment to expand its offerings. It's a $20 billion buyout – half in cash and half in stock.

For Adobe, that isn't much money. The company's market cap is roughly $134 billion.

However, Wall Street wasn't thrilled. And investment banks downgraded the stock in response.

It’s oversold