Thu Sep 11 20:00:00 UTC 2025: **Adobe Faces Existential Threat from AI, Investors Wary Ahead of Earnings**
San Francisco, CA – Adobe Inc. (ADBE) is under pressure as its stock price plummeted due to concerns that the rise of AI threatens its core business. Investors are approaching the company’s upcoming quarterly earnings report with caution, as AI tools are rapidly evolving and disrupting the market for creative software.
Adobe’s stock has fallen over 20% this year and twice that since the end of 2023. Its valuation is near a decade low. Analysts expect revenue growth to slow, raising concerns about Adobe’s ability to compete and innovate in the AI era.
The report said, that AI image generation is challenging Adobe’s traditional software. Some analysts point to Oracle Corp. as an AI winner. Others say Adobe is a GenAI winner, showing stability.
Despite the concerns, some analysts see opportunity in Adobe’s low valuation, with many maintaining a “buy” rating. The company is also trading more than 35% below the average analyst price target, making for the third-highest implied return among any component of the S&P 500 tech sector index.
First Piper 