Adobe Stock Drops 3.33% Amid AI Concerns

On June 13, 2025, Adobe's stock experienced a 3.33% drop in pre-market trading, reflecting investor concerns and market dynamics.

Citigroup maintained a neutral rating for Adobe, setting a target price of $465.00. Meanwhile, Morgan Stanley highlighted Adobe's attractive valuation and the potential for generative AI to drive earnings growth, keeping a "buy" rating with a target price of $510.00. The firm noted that discussions around AI's impact and related headlines are unlikely to subside soon, and addressing earnings growth concerns is crucial to easing bearish sentiment.

Adobe's stock has faced pressure due to worries about potential AI disruption, with investors concerned that generative AI tools could impact its market position. Despite a strong track record, the company's stock has declined by about 7% this year, reflecting investor anxiety over AI competition.

Adobe's second-quarter fiscal 2025 results exceeded expectations, reporting an 11% year-over-year revenue growth to $5.87 billion. The company's strong revenue growth and AI progress have been noted as positive factors, although concerns about AI's impact on its business model persist.

Analysts have mixed opinions on Adobe's stock, with some recommending a buy due to its attractive valuation and growth potential, while others express caution due to AI-related uncertainties and increased competition. The stock's performance has been influenced by cautious revenue guidance, slow AI-related gains, and rising competition, leading to a drop of over 10% in the past year.