technology
Adobe shares slides as investors skeptical of faster AI-Adoption returns
(Reuters) – Adobe (Adbe.o) stock fell 7% in early trading on Friday. Concerns that AI adoption in investor software tools could take time to acquire returns have extended annual revenue forecasts.
Angelosino, senior equity analyst at CFRA Research, said:
The San Jose, California-based creative software veteran relies on creatives for tools like Photoshop and Premiere Pro.
In April, the company said it would add AI models to its generative AI tools from Openai and Google (Googl.o).
This tool allows users to create and edit images and videos for commercial purposes using basic text prompts without facing copyright challenges.
“While guidance has been raised and management on demand generation remains positive, we feel it will take more time to prove quiet concerns about these (ai) initiatives and competition around genai,” RBC analysts said in a memo.
Adobe currently expects 2025 revenues of between $23.5 billion and $23.5 billion to $23.55 billion for 2025.
Following the results in the second quarter, at least five brokerages have lowered their price targets for Adobe stock.
Stock prices have fallen by around 13% so far this year, including session losses.
The company's 12-month advanced price-to-return ratio is 18.88 compared to Autodesk (ADSK.O) 29.16.
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