Adobe stock sinks as weak outlook stokes fears over AI monetization, growing competition

Published On Dec 12, 2024, 10:41 AM

Adobe's stock fell sharply after the company issued a disappointing outlook for fiscal year 2025, citing concerns about the monetization of its AI tools and increased competition in the generative AI market. Analysts noted that Adobe's revenue and earnings forecasts were below expectations, and the company has been slower in rolling out its AI offerings compared to competitors. While some analysts remain optimistic about Adobe's long-term prospects, concerns about management's communication and revenue guidance have overshadowed its performance.