Adobe Stock Downgraded as Analysts Flag AI Strategy Risks: Bullish Signal for Crypto’s Disruptive Potential?

Wall Street analysts just downgraded Adobe stock—citing AI strategy risks as their primary concern. Traditional finance remains skeptical of emerging tech's disruptive power.

Meanwhile, crypto markets continue demonstrating why decentralized AI infrastructure represents the actual innovation frontier.

While legacy software giants struggle to adapt, blockchain-native AI projects already deliver tangible utility—from decentralized data markets to on-chain inference networks.

Adobe's downgrade reveals more about institutional risk aversion than AI's actual potential. Smart money knows real disruption rarely comes from established players.

Perhaps analysts should spend less time downgrading legacy tech and more time understanding why crypto's AI ecosystem keeps attracting developer momentum and capital flows.

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However, on the other side of the spectrum, we find Goldman Sachs and Morgan Stanley, who remain positive with a Buy rating and a bullish price target of $570 and $510, respectively. In the meantime, Adobe’s stock is down more than 18% year-to-date, but it ROSE 2.45% on Friday.

Strong Results, Mixed Views on AI Plans

It’s clear that Adobe’s AI strategy divides opinions among The Street’s analysts. New features such as Firefly AI and Acrobat Studio aim to keep users within the platform, and Adobe launched standalone Firefly plans starting at $9.99 per month. Yet some worry that free or lower-cost AI tools could challenge the subscription model. Copyright concerns and slower-than-expected monetization for AI features add to the uncertainty.

Financial results remain strong. Adobe reported $5.87 billion in revenue for the second quarter, up 11% from a year earlier. Earnings also beat estimates, and the company lifted its full-year revenue forecast to between $23.5 billion and $23.6 billion. Growth was supported by gains in Digital Media, with annual recurring revenue reaching $18.09 billion. The company also highlighted a strong cash FLOW of $2.19 billion. For now, Adobe holds a strong position in creative software, but the next stage of growth depends on how well its AI plans deliver value.

Is Adobe Stock a Buy, Sell, or Hold?

Despite mixed views, Adobe holds a Moderate Buy consensus across 29 analyst ratings. The average ADBE stock price target stands at $479.46, implying a 33.14% upside from the current price.