New York, January 11, 2026, 13:00 ET — The market has closed.
- Adobe slipped 1.5% Friday following BMO’s downgrade to “market perform” and a price target cut to $375 from $400. (TradingView)
- Investors kick off the week eyeing Tuesday’s U.S. CPI inflation figures and the kickoff of major bank earnings. (Reuters)
- Adobe’s upcoming fiscal first-quarter earnings call is set for March 12. (Adobe)
Adobe (ADBE.O) opens Monday in the spotlight following a broker downgrade that highlighted rising competition in its Creative Cloud segment, a staple for investors seeking subscription software exposure in the cloud computing space.
Timing couldn’t be more inconvenient. Stocks kicked off 2026 on a strong note, yet the upcoming week will deliver inflation figures alongside the first wave of earnings reports — a combo that could escalate a mild dip into a more pronounced slide.
For Adobe, the focus has tightened. Investors demand evidence that the new generative AI capabilities are driving paid user growth and boosting pricing power, beyond just impressive demos.
BMO Capital Markets analyst Keith Bachman downgraded Adobe from “outperform” to “market perform” and lowered his price target to $375 from $400. He cited mounting competitive pressure from smaller businesses, students, and freelancers. “Creative market competitive dynamics are increasing,” Bachman noted, highlighting competitors like Canva and Alphabet as Adobe expands its AI-assisted creation efforts. (Barron’s)
Adobe has doubled down on its cloud subscription services — Creative Cloud, Document Cloud, and Experience Cloud — while integrating its Firefly generative AI tools into its applications. Back in December, the company projected fiscal 2026 revenue and adjusted profits that exceeded Wall Street’s estimates, pointing to strong demand for its design software and growing traction for its AI features. (Reuters)
The broader market hasn’t been an issue. On Friday, the S&P 500 closed at a record high, driven by chipmakers, as investors shrugged off a weaker-than-expected jobs report and held onto rate-cut hopes. “Investors are getting granular and picking the winners and losers,” said Zachary Hill, head of portfolio management at Horizon Investments, commenting on the AI-themed trade. (Reuters)
Adobe has landed in that sorting bin. Traders are watching to see if the stock can find footing alongside megacap tech or if it will face further downgrades and negative channel checks after the BMO call.
Annual recurring revenue remains a crucial gauge, reflecting the subscription run-rate and indicating if demand for cloud software keeps growing. Adobe faces scrutiny over its AI feature pricing, along with concerns that budget-conscious users might be shifting to less expensive alternatives.
Adobe’s upcoming key date is the Q1 FY2026 earnings call set for Thursday, March 12, per its investor relations calendar. (Adobe)
Macro data could steer high-multiple software stocks early in the week. Reuters’ “Week Ahead” flagged Tuesday’s CPI report as a key signal for the Fed’s next move, while major banks begin rolling out quarterly results that same day. (Reuters)
The path isn’t straightforward. A hotter CPI reading might drive yields higher, weighing on long-duration growth stocks. Meanwhile, a lackluster Adobe update on competitive churn or AI monetization could fuel the downgrade talk.
Monday’s session will focus on whether selling pressure on Adobe eases after its downgrade, and if Tuesday’s CPI shifts risk appetite for cloud software before Adobe reports earnings on March 12.
