Michael Burry, the investor known for The Big Short, publicly urged Adobe to acquire the artificial intelligence company Midjourney. Burry stated on X that Adobe must act to protect its dominant position in the creative software market. He argued that the acquisition would counter the rising threat of free AI-powered tools.
Burry identified Adobe's substantial operating cash flow as the means to fund these strategic acquisitions. He emphasized that such moves are necessary to safeguard the company’s core franchises.
Adobe stock has declined nearly 20% year-to-date in 2026. Increased competition from free AI models is currently challenging Adobe's core product suite.
Wall Street has responded with significant attention to Burry’s public statement. The commentary reflects a growing sentiment that Adobe must pursue acquisitions to maintain its competitive edge in the evolving AI landscape.