I was just wondering what everyone’s thoughts were on the sudden pivot to Adobe pushing a freemium model? Annual Recurring Revenue Growth is arguably the single most important metric for the stock from the perspective of Wallstreet and the stock price. You would think that the fact they have 10 quarters in a row of decelerating ARR growth would incentivize the company stop the bleeding and raise subscription prices to boost ARR. Instead, they chose to do the opposite and sacrifice more ARR growth loss in the short term in order to grow monthly active users. That, coupled with the CEO of 18 years resigning randomly with no named replacement definitely poses a lot of questions. Do you think this is a sign that their MOAT is at a breaking point? For reference, ARR growth has dropped from 14% in Q1 2024 to a projected 8% by the end of FY2026 (not including Semrush Acquisition).
What are your thoughts on the stock? Is this a generational buying opportunity, sinking ship or something in the middle?