Semrush stock soars on Adobe deal — but it may not be as positive for ADBE shares

Semrush (SEMR) soared over 70% on Wednesday after Adobe Inc (NASDAQ: ADBE) announced plans to acquire the search engine marketing platform for $1.9 billion in cash.

ADBE deal values each SEMR share at $12 – a massive premium on their previous close – since the San Jose-headquartered firm believes the buyout will improve its digital market capabilities in the age of AI.

Adobe expects this transaction to close in the first half of 2026. Despite a massive surge on November 19, Semrush stock remains down over 35% versus its year-to-date high in early February.

Why this deal is a major win for Semrush stock

SEMR shares skyrocketed on the Adobe announcement since it validates the company’s role in the evolving digital marketing landscape.

The NYSE-listed firm – which went public in 2021 – has built a strong reputation among marketers for its search engine optimisation (SEO) and search analytics tools.

With marquee clients like Amazon and TikTok, Semrush has proven its relevance in high-growth sectors.

Adobe’s endorsement and willingness to pay nearly double the stock’s last closing price indicate confidence in SEMR’s long-term utility.

Anil Chakravarthy, its digital experience chief, emphasised that “brand visibility is being reshaped by generative AI,” and Semrush’s platform is key to helping businesses adapt.

For the acquiree’s shareholders, the transaction offers a lucrative exit and a vote of confidence in its long-term strategic importance.

SEMR deal may not resolve Adobe’s core challenge

While evidently bullish for Semrush shares, the aforementioned agreement may not be as positive for Adobe stock, which is actually inching down on Wednesday.   

At the time of writing, ADBE shares are down over 30% versus their year-to-date high, reflecting investor unease about its positioning in the artificial intelligence arms race.

While Adobe has introduced AI features across its product suite – including assistants for Acrobat and Reader – it’s struggled to convince the market that it’s a true AI leader.

The failed $20 billion bid for Figma in 2023, blocked by regulators, further dented sentiment.

The Semrush acquisition, while strategic, doesn’t address Adobe’s core challenge: proving it can compete with faster-moving AI-native platforms.

Investors appear unconvinced that bolstering search marketing tools alone will reverse the broader downtrend.

SEMR shares and Adobe stock – a tale of two trajectories

The Adobe-Semrush deal highlights a divergence in investor sentiment.

Semrush is being rewarded for its niche dominance and alignment with the AI-driven marketing trend.

Adobe, meanwhile, faces pressure to demonstrate that its acquisitions translate into meaningful innovation and growth.

As SaaS valuations remain under scrutiny and artificial intelligence continues to reshape software economics, ADBE’s next moves will be critical.

For now, Semrush shareholders are celebrating, but Adobe investors are still waiting for a catalyst that restores confidence in the company’s long-term vision.

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