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Business
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Jun 16, 2025
Adobe's stock declines amid AI-Adoption concerns
Adobe's stock dropped 7% in early trading on Friday, even though the company just raised its annual revenue forecast. Investors seem unsure about how fast Adobe's new AI tools—powered by OpenAI and Google—will actually boost profits. The company is betting big on its Firefly tool, which lets users create and edit images and videos with simple text prompts.
TL;DR
It'll take time to see if these AI moves pay off
After reporting Q2 results, several brokerages lowered their price targets for Adobe, noting the stock is already down 13% this year. Analysts say it'll take time to see if these AI moves pay off and help Adobe compete. For context: Adobe's price-to-earnings ratio is much lower than Autodesk's right now, showing just how cautious the market feels about tech stocks in today's economy.