Adobe Faces Investor Skepticism as AI Reshapes Creative Software Landscape
Adobe Inc. finds itself at a crossroads as artificial intelligence upends traditional content creation tools. The company's recent showcase to 10,000 creative professionals highlighted its AI adaptations, but Wall Street remains unconvinced. Citigroup's Tyler Radke notes 'structural AI-driven competitive pressure' despite Adobe's strategic efforts, with shares down 25% year-to-date.
The rise of standalone AI tools like OpenAI's Sora and Google's Veo threatens Adobe's ecosystem dominance. Consumer platforms such as Canva continue eroding its professional software moat. Bloomberg analysts project slowing Digital Media revenue growth, though Evercore's Kirk Materne sees recent moves as addressing existential risks.