Adobe and Figma Stocks Are Up 5% Today, But BTIG Remains Cautious

Creative software firms Adobe (ADBE) and Figma (FIG) saw BTIG analyst Nick Altmann begin coverage with Hold ratings on each. This is due to a mix of strong business results and growing uncertainty, especially as AI starts to change how creative tools are used. While both stocks were up by more than 5% at the time of writing, the main takeaway is that analysts are not fully convinced yet. Instead, although they see upside in both companies, they want clearer proof of how AI will affect their future growth and profitability before turning more positive.

When it comes to Adobe, the company is still the clear leader in creative software, mainly because of its Creative Cloud platform. This has helped it generate about $24 billion in Fiscal 2025 revenue (11% year-over-year) while also maintaining very high margins of about 37%. However, even with these strong numbers, AI is creating new concerns about the future. Nevertheless, BTIG likes Adobe’s AI strategy and believes that the stock looks relatively cheap compared to peers, at around 11.5x expected 2027 earnings versus about 26x for others.

BTIG is also positive on Figma’s products, but is again waiting for more clarity before becoming more bullish. The company has started to monetize its AI feature called “Make” by introducing credit usage and limits, which began rolling out more broadly in March. Early signs are strong, with weekly active users for the feature up 70% quarter-over-quarter, although high AI costs are hurting margins for now. As a result, Figma could become one of the first software companies to successfully monetize AI, but it is still unclear how much users will continue to use the product.

Which Creative Software Company Is the Better Buy?

Turning to Wall Street, out of the two stocks mentioned above, analysts think that FIG stock has more room to run than ADBE. In fact, FIG’s price target of $40.25 per share implies 108.6% upside versus ADBE’s 33.8%.