On January 15, 2026, reports confirmed that institutional investors reduced their stakes in Adobe during the most recent quarter. Stephens Inc. AR and Meritage Portfolio Management were among the firms selling shares.
This action amplifies persistent negative sentiment surrounding the company. Concerns over increased competition and recent analyst downgrades, including one from Goldman Sachs, fuel this bearish outlook.
This sentiment overshadows Adobe’s strong operational performance. The company recently posted an earnings beat and issued positive guidance for fiscal year 2026. Adobe also boasts solid cash flow and continues to advance its AI-powered offerings.
Despite continued market leadership in creative software, the stock trades near 52-week lows. The market appears focused on growth deceleration and competitive threats, driving a prevailing narrative of a "confidence crisis."