things just got really juicy over at Adobe as you've probably heard Adobe have acquired figma
for a whopping 20 billion with a b and dollars and we're soon going to see what actually means
to you figma users out there on the news of this deal the Adobe stock price has suffered the worst
fall in 10 years more about that later but has Adobe made a huge era and could this spell the
end or the demise of this huge Titan in Silicon Valley well firstly why did Adobe spend so much
money in capital and stock on figma well the obvious answer would be fear and just
competition instead of deciding to compete with figma which is an awesome product might
I add they've decided to just outright acquire it when it comes to buying companies Adobe isn't too
shy since 2018 they have bought frame dot IO a social media marketing platform called Contact
Cal and a collaboration maker called workfront oh and also in 2018 they spent 4.75 billion on
something called Marketo yeah I have not heard of it either Adobe is buying things quicker than
I'm actually buying new rare Pokemon cards and that's a thought actually how do you think Adobe
is actually doing at the moment as a business yeah surely if they are worried about competition and
that's you know many people are actually Fed Up and bored with paying monthly subscriptions to
Adobe they should be losing money right wrong actually adobe's profits for a 12-month period
from May 2021 to 2022 was actually 14.66 billion dollars but yeah obviously they have expended a
huge amount of Revenue on this deal and actually it's 50 50 between cash and stock so 10 billion
a piece the fact that the stock price of adobe crashed the hardest in 10 years does show that
investors might not be on board with the decision many people actually suggest that the 20 billion
price tag was just way too much my thoughts are that there are people that adobe have
used obviously to Chrome punch the numbers and just run simulations for profit margins and they
probably do know what they're doing it's still pretty pricey there right but what happens to
figma people online have voiced their opinions pretty strongly this person thinks figma will
soon become just as expensive as Adobe programs and it's a pretty cool illustration that I posted
so I'm just going to smash that like button but the truth is nobody truly knows what's going to
happen to figma and XD from here onwards however statements from Adobe and also figma suggests that
not much is going to happen to figma at least not negatively speaking anyway and to the joy
of many figma hobbyists and designers apparently the price Model isn't going to change from here
onwards but like I said nothing is set in stone as of yet and figma isn't going to be under the Adobe
umbrella until somewhere in 2023 anyway and that's when we will actually fully understand what Adobe
plans in terms of integration with figma we might actually see that figma becomes a part of the
Creative Cloud package and perhaps there might be some shareability between Adobe dimensions
and also figma however my humble opinion is that it doesn't make sense from a business standpoint
to both Run Adobe XD and figma at the same time I believe that one of them is eventually just
going to be axed in 2023 or sometime around there anyway but I'm not sure which one it's going to
be figma is clearly the crowd favorites and it's more intuitive to use it's also totally free to
those in education which is really really cool Adobe has said figma will reach a market value
of 16.55 billion by 2025 and that's across design whiteboarding and collaborations so they obviously
are here to play the long game when it comes to figma it's a future time here several days
after recording the video you're watching now and something crazy has happened so I need to add into
the video have you ever heard of something called penpot Inc no I didn't either but it's actually
an open source platform that brings developers and designers together to work on projects since
the Adobe deal with figma it's actually seen the signups increase by five thousand six hundred
percent so on the one hand you have Adobe who are spending billions and billions of dollars to buy
out other companies and then you have something like pen pot Inc which are open source and free
it's two very different worlds and it's going to be interesting to see if they can actually
coexist together in harmony or will Adobe chest pretty much acquire pen pot ink at some point as
well it's pretty obvious that a lot of users from figma have jumped ship over to penpok Inc since
the Adobe deal with them and in all honesty this is pretty much another thorn in the foot for Adobe
money cannot buy consumer loyalty past a certain point of no return and maybe just maybe Adobe are
reaching that point right now swinging background to Adobe let's check out their stock price I do
actually invest and trade in crypto and stocks on a daily basis so I do see these kind of charts all
the time the Adobe stock has been declining since since 2021 and you might think to yourself well
Adobe is in serious trouble here but the reality is that the majority of stocks out there are
falling in similar ways as well these drops were sparked by the pandemic among other things but to
me the Adobe stock is very very overextended and has a lot more downside to come yet here's the s
p which is basically a collection of many U.S businesses and we can see a similar structure
and pattern playing out where the stock has essentially topped out and it's helling South most
stocks are probably going to drop over the next one or two years but is Adobe going to weather the
storm and would it come out of the recession okay my answer or Outlook is probably yes Adobe has a
capital they have the power the dominance and the employer numbers behind them but Adobe is probably
going to still be a dominant Force even up until 2024 and onwards we'll have to wait to 2023 to see
what's going to happen to figma and speaking of which by that time artificial intelligence
might have taken over able to hold his home space and if you want to explore that topic
then just click the video on screen but until next time guys design your future today peace