Adobe’s AI Ambitions Face Investor Skepticism

Adobe’s position as the premier provider of creative software is facing an unprecedented challenge from the artificial intelligence revolution. Rather than capitalizing on this technological shift, the company is witnessing growing doubts about its ability to effectively monetize AI capabilities. This skepticism has triggered a wave of analyst downgrades that has shaken investor confidence in the software giant.

The situation reached a critical point on September 24th when Morgan Stanley downgraded Adobe from “Overweight” to “Equal Weight” while dramatically slashing its price target from $520 to $450. Analyst Keith Weiss identified the core issue, noting that “a widening gap exists between the company’s AI promises and actual revenue performance.”

This downgrade represented the culmination of growing analyst concerns.... Read more...