- Shares of the American software developer Adobe have now become attractive to investors for two reasons.
- Longs on them were opened by the “big shortseller” Michael Burry, and the company itself announced a share buyback worth $25 billion.
Recently, a rumor was confirmed that Adobe (NASDAQ: ADBE) shares had attracted the attention of Michael Burry, known for his role in the film “The Big Short,” who opened a long position in the company’s shares. This information contributed to ADBE’s share price rise, and investors received further good news on April 22.
Adobe, in particular, announced the approval of a $25 billion share repurchase program, which should be seen as a sign of the company’s confidence in its prospects amid widespread concerns about the disruptive impact of artificial intelligence (AI).
Our new $25 billion share repurchase authorization is a clear expression of confidence in our robust cash flow and the long-term value we deliver to investors,” said Chief Financial Officer Dan Doern.
Initial reaction The market’s reaction to the approval looked positive. After five volatile days, which saw ADBE shares rise 2,49% to their final closing price of $247,18, they rose 3,14% to $254,94 during the additional trading session.
ADBE Price Changes. Perplexity Data
On April 13, Michael Burry confirmed that Adobe shares are part of his large bet that software stocks have bottomed out and are likely to rally due to concerns raised by the release of Anthropologie AI agents and plugins.
ADBE shares traded at $240,11 that day, meaning the well-known short seller had made a 2,94% profit on his investment by the close of trading on April 21. Including the last trading session, that’s a gain of 6,18%.
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