Adobe shares fell 3.17% to $256.27, hitting their lowest level since March 2020 as analyst downgrades and AI competition concerns weigh on the stock. The company is aggressively pivoting its strategy toward generative AI to defend its market position.

  • Goldman Sachs and Oppenheimer issued downgrades, citing fears that AI democratization is eroding the company’s competitive moat.
  • Adobe confirmed the shutdown of Adobe Animate on February 9 to reallocate resources toward its generative AI initiatives.
  • While a new version of Acrobat Sign was released this week, valuation remains pressured by rising competition from OpenAI and Canva.