New York, Jan 20, 2026, 19:29 EST — After-hours
- Shares of Adobe slipped almost 2% on Tuesday, hovering near the bottom of their 52-week trading range
- The company rolled out new AI video tools and highlighted creator funding right before Sundance
- Traders are pushing for clearer insights on AI monetization and demand in the next earnings report
Shares of Adobe Inc (NASDAQ:ADBE) slipped nearly 2% Tuesday, lingering just above their 52-week low as selling pressure weighed on software stocks. The price touched $288.37 during regular hours and traded around $290.37 in after-hours. 1
Adobe’s stock fell for a seventh straight session, dragging it down around 38% from its 52-week high. But it held up better than many other mega-cap tech stocks amid a rough day for U.S. markets. About 6.9 million shares changed hands—well above its 50-day average of 4.1 million, according to MarketWatch data. 2
Adobe’s recent actions have thrust it into the spotlight of a bigger tech debate: is generative AI driving up software demand or simply replacing jobs at a lower cost? Jordi Visser from 22V Research warned that beaten-down software stocks could turn out to be “value traps.” Speaking to Benzinga, his report—which Finviz highlighted—stressed, “This isn’t a typical sector rotation.” 3
Adobe is pushing forward with new AI enhancements. Just ahead of the Sundance Film Festival, the company unveiled updated AI-driven video tools for Premiere and After Effects. It also revealed tighter integration between Premiere and Firefly Boards, an ideation platform powered by AI models from Google, OpenAI, and Runway. “We’re committed to advancing AI video tools,” said Deepa Subramaniam, Adobe’s vice president of product marketing for creative professionals. 4
Adobe, the company behind Photoshop and Acrobat, is pushing Firefly and other AI tools to drive user engagement and boost subscription sales. Back in December, it forecasted fiscal 2026 revenue between $25.90 billion and $26.10 billion, with adjusted EPS ranging from $23.30 to $23.50. Both numbers beat Wall Street expectations, according to Reuters. 5
The market is fixated on timing and trade-offs. Investors want to know how quickly AI advances will translate into real revenue and whether increased spending plus tougher competition could squeeze margins, the Wall Street Journal reported. 6
Tuesday’s low has become a crucial level for short-term traders. A drop under $288 might trigger a plunge to fresh lows, challenging the recent selling pressure.
On the other hand, stabilisation likely requires more than just rolling out another feature. Investors want clearer signs around pricing strategy, paid adoption, and if AI tools actually boost renewals rather than steering customers to cheaper alternatives.
Right now, the stock seems to act more as a barometer for software sentiment. Adobe is pushing AI upgrades and partnerships, but investors are zeroed in on who ends up controlling the economics as creation accelerates and costs fall.
Adobe will report its fiscal 2026 first-quarter earnings on March 12. Investors are eager to see if demand remains robust and if the company is successfully turning its AI capabilities into consistent revenue. 7
