Cathie Wood is Dumping These 5 Stocks

2. Adobe Inc. (NASDAQ: ADBE)

Number of Hedge Fund Holders: 89  

Adobe Inc. (NASDAQ: ADBE) is ranked second on our list of 15 stocks that Cathie Wood is dumping. The firm operates as a diversified software company and is headquartered in California. 

On September 3, investment advisory Argus maintained a Buy rating on Adobe Inc. (NASDAQ: ADBE) stock and raised the price target to $764 from $650, noting that the stock had “blown through” previous price target. 

Out of the hedge funds being tracked by Insider Monkey, Washington-based investment firm Fisher Asset Management is a leading shareholder in Adobe Inc. (NASDAQ: ADBE) with 6.2 million shares worth more than $3.6 billion.

Here is what Polen Capital has to say about Adobe Inc. (NASDAQ: ADBE) in its Q1 2021 investor letter:

“Adobe and Autodesk are both prime examples of the rotation that occurred during the quarter. Both are dominant businesses in their respective markets, which are experiencing structural tailwinds. Despite each business’s position of strength, the stocks of cyclicals and businesses with higher leverage and lower profitability were more favored this past quarter. In stark contrast, Adobe and Autodesk both have low leverage, high levels of profitability, high recurring revenues that mitigate cyclicality, and are both capital-light business models—all attributes we appreciate as investors. Adobe and Autodesk were also two of the top three performers within the Portfolio during 2020.”