Adobe stocks dip amid AI-Adoption concerns
Adobe's stock dropped 7% after investors got nervous about how long it's taking for the company's big AI investments to actually pay off. Even though Adobe bumped up its revenue forecast for next year, Wall Street is still unsure, especially since rivals like Google seem to be moving forward with their own AI tools. Adobe is rolling out OpenAI and Google-powered features in Firefly for creating images and videos from text prompts, but some analysts—like Angelo Zino at CFRA—express concerns about competitive pressures.
Adobe bumps up revenue forecast, but...
Adobe now expects 2025 revenue between $23.50 and $23.60 billion (a bit higher than before), but that wasn't enough to stop several brokerages from lowering their price targets after recent results. The stock is down about 13% this year, and its valuation trails behind competitors like Autodesk. Investors are clearly watching closely to see if all this AI hype will turn into real growth soon.