Why Sora Will Struggle Disrupting Adobe’s (ADBE) Creative Moat

Adobe (ADBE), the longtime leader in creative software, recently hit a 52-week low NEAR $327, reflecting growing skepticism about its investment outlook. Fears that artificial intelligence could erode Adobe’s dominance intensified with the debut of Sora 2, OpenAI’s advanced text-to-video model integrated into ChatGPT Plus and Pro. The model’s rapid adoption and positive feedback underscore its technological leap in automated video generation, posing a direct threat to Adobe’s stronghold in content creation, video production, visual effects, and marketing.

Adobe’s recent earnings disappointment stemmed not from weak fundamentals but from a slight slowdown in subscription growth. Bears argue this signals a narrowing leadership gap in creative software as new entrants like Sora gain traction. Sentiment-driven headwinds now overshadow Adobe’s legacy moat, though its entrenched ecosystem and professional tools may still pose barriers to disruption.