Overview
- Oppenheimer cut Adobe to market perform from outperform, coinciding with a roughly 5.4% single-day drop and a new 52-week low near $311.55.
- The move followed Goldman Sachs shifting to sell with a $290 target, alongside recent downgrades from BMO (market perform, $375), Jefferies (hold) and KeyBanc (underweight, $310).
- Research notes highlight rising competition from AI-powered tools offered by OpenAI, Meta, Canva and Figma that lower barriers to professional-quality content creation.
- Several firms warn that generative AI could pressure subscriber growth and challenge seat-based pricing as usage-based models gain traction.
- The selloff comes despite Adobe beating expectations on Q4 net ARR and total revenue, with shares still down sharply over the past year and well below their 2021 peak.