Adobe Shares Slide Amid AI Monetization Concerns
Adobe (ADBE) shares declined sharply at the week''s close as investors questioned the timeline for returns on the company''s AI investments. Despite raising its annual revenue forecast to $23.50-$23.60 billion, analysts flagged extended monetization horizons for its Firefly generative AI tool, now incorporating models from OpenAI and Google.
CFRA Research''s Angelo Zino noted "increasing concerns surrounding competitive pressures" in generative AI, while RBC analysts cautioned these initiatives need more time to validate. The stock now trades below its 200-day moving average—a potential entry point for contrarians.