New York, February 10, 2026, 12:57 EST — Regular session continues.
- Adobe shares ticked up slightly by midday following a volatile start to the session.
- Software names remained in the spotlight, following last week’s AI-fueled selloff and a rebound in sector demand.
- All eyes now turn to U.S. payrolls and inflation figures due out later this week, as traders hunt for the next signal on rates.
Adobe Inc (ADBE.O) edged up 0.3% to $267.79 around midday Tuesday, clawing back after an earlier drop to $263.21. Shares have swung between $263.21 and $270.70 during the session.
Investors sifted through beaten-down software stocks after last week’s rout, triggered by worries that rapid-fire advances in artificial intelligence could shake up the sector. Net inflows into BlackRock’s iShares Expanded Tech-Software Sector ETF (IGV) surged to a record $176 million on a one‑month rolling basis as of Monday’s close, Vanda Research said. The S&P 500 Software and Services index has dropped roughly 13% since late January. 1
Tech stocks managed to steady themselves Monday, though nerves lingered ahead of U.S. data releases that could alter the outlook for Fed rate cuts. “You’ve a sharply oversold market where a little bit of good news can go a long way,” Keith Lerner, chief investment officer at Truist Advisory Services, said to Reuters. Traders now have their focus on the delayed January jobs report slated for Wednesday, with the January CPI data expected Friday. 2
Options traders are still bracing for sharp moves in software stocks. The group trails the S&P 500 by almost 24 percentage points over the last three months. IGV’s 30‑day implied volatility jumped to about 41% after last week’s selloff, hinting at elevated expectations for turbulence. Ortex data showed short interest in the ETF hovered near 19% through Thursday, just shy of a record high. 3
Solid earnings reports managed to lift sentiment a bit. Shares of cloud monitoring outfit Datadog surged over 14% after Tuesday’s fourth-quarter numbers topped forecasts. CEO Olivier Pomel pointed to “over 400 new features” coming in 2025, as customers moved more workloads to the cloud and started rolling out next-gen AI. 4
Adobe has been pushing deeper into generative AI, integrating new text and image capabilities into Creative Cloud. CFO Dan Durn pointed to “significant strength in Creative Cloud Pro, Photoshop, Lightroom” as the company rolls out more AI-powered features. Freemium monthly active users have jumped past 70 million. Back in December, Adobe laid out a fiscal 2026 revenue outlook of $25.90 billion to $26.10 billion, with adjusted EPS projected between $23.30 and $23.50. 5
Adobe is pushing further into marketing software, signing a deal in November to acquire SEO platform Semrush for roughly $1.9 billion in cash. “Brand visibility is being reshaped by generative AI,” said Anil Chakravarthy, who leads Adobe’s Digital Experience business, at the time of the announcement. The companies expect the transaction—which still awaits regulatory clearance and other approvals—to close in the first half of 2026. SEO refers to search engine optimization. Semrush, meanwhile, is touting a tool it calls “GEO” to measure presence within AI-focused search. 6
With Adobe, the immediate test is if customers see enough value in AI add‑ons to shell out extra, or if they expect those features as standard. That distinction is key for pricing—and that’s the lens through which investors keep sizing up the stock.
Shares tend to get tossed around whenever “AI disruption” jitters surface, even if nothing else is happening. Lately, the stock’s been moving less on its own fundamentals and more as a stand-in for the whole sector.
Markets are looking at the next macro update on Wednesday, Feb. 11, when delayed U.S. payrolls numbers finally land. January CPI is up next, set for Friday, Feb. 13. Any surprise in these figures could jolt Treasury yields—and with them, demand for high-multiple software stocks like Adobe.
