Adobe Inc. (NASDAQ: ADBE) finished Wednesday, December 17, 2025, on a stronger note in regular trading, then barely moved after the bell as investors digested a fresh legal headline tied to AI training data and a round of analyst updates.
Adobe stock closed at $354.66, up 1.95%, after trading between $347.80 and $357.80. In after-hours trading, ADBE was about $355.30 (+0.18%) as of 7:03 p.m. ET, suggesting the market’s first reaction to the evening news flow was muted. [1]
The biggest company-specific headline late in the day: Reuters reported Adobe was hit with a proposed class action alleging that some of its AI tools were trained on writers’ copyrighted work without permission—an issue that has become a recurring risk factor across the generative AI landscape. [2]
Below is what mattered after the bell on Dec. 17—and what traders will be watching before the U.S. stock market opens Thursday, Dec. 18, 2025.
Adobe stock after the bell: the numbers investors are waking up to
- Regular-session close (Dec. 17): $354.66 (+1.95%) [3]
- After-hours (as of 7:03 p.m. ET): $355.30 (+0.18%) [4]
- Day’s range: $347.80 to $357.80 [5]
- Volume: ~4.20 million shares [6]
That “flat-to-slightly-up” after-hours action is important context: extended trading can exaggerate small moves, but it can also signal that investors are not rushing to reprice the stock immediately—especially when the next catalyst may be macro data rather than an Adobe-specific scheduled event.
The headline risk tonight: Adobe hit with a proposed AI training class action
In the most consequential piece of Adobe news reported on Dec. 17, Reuters said Adobe faces a proposed class action that claims its AI tools were trained using writers’ copyrighted work without authorization. [7]
Key details from Reuters’ report:
- The plaintiff, author Elizabeth Lyon, alleges Adobe used books (including hers) to train AI models “to respond to human prompts.” [8]
- The complaint was filed in California federal court and seeks unspecified monetary damages on behalf of a proposed class of copyright owners. [9]
- Reuters reported Lyon alleged Adobe used pirated copies to train its SlimLM small language models, described as assisting with document-related tasks on mobile devices. [10]
- Adobe did not immediately respond to Reuters’ request for comment, according to the report. [11]
Why this matters for ADBE shareholders before Thursday’s open:
- Legal overhang + AI narrative: Adobe’s bull/bear debate is already heavily centered on whether its AI strategy is accelerating growth and monetization. A copyright/training-data dispute can inject uncertainty into that narrative—particularly around model development, product roadmaps, and potential litigation costs.
- Sector precedent: Reuters framed this as part of a broader wave of AI copyright litigation and noted major suits against other AI companies. [12]
- Timing: Even if the market reaction is calm in after-hours, institutional investors often reassess overnight, and headlines can shape premarket tone.
Fresh Wall Street calls today: Citi lifts its target, but stays neutral
On the analyst front, one of the most notable “today” updates came from Citigroup.
According to GuruFocus’ summary of the call, Citi analyst Tyler Radke raised Adobe’s price target to $387 from $366, while maintaining a Neutral rating. [13]
GuruFocus also highlighted the broader mixed tone around the stock this week, noting:
- KeyBanc downgraded Adobe to Underweight on Dec. 15 and set a $310 target (per the GuruFocus roundup). [14]
- Other firms have been adjusting targets rather than issuing decisive upgrades—consistent with a market still trying to handicap Adobe’s AI payoff and competitive positioning. [15]
Separately, MarketBeat’s Dec. 17 trading recap underscored that the Street remains split: it cited an average “Hold” stance and an average target around $417.93 (from its tracked analyst set), with ratings spanning buys, holds, and sells. [16]
What this means going into Thursday:
- A rising target with a neutral rating often reads as: “better risk/reward than before, but not enough clarity to pound the table.”
- For a large-cap software name like Adobe, rating dispersion can amplify volatility around headlines—because positioning tends to be less one-sided.
“Rebased” narrative: the bullish case is trying to re-form, not fully reset
A separate analysis thread circulating today focuses on the idea that Adobe’s story is being “rebased” after its better-than-expected quarter—i.e., expectations reset lower, and the AI monetization narrative is becoming clearer.
A Finviz-linked piece citing Insider Monkey highlighted that Bernstein maintained an Outperform rating and (as of a Dec. 12 note) trimmed its target slightly to $506, describing Adobe’s guidance and initiatives as incrementally positive and pointing to clearer implementation of its AI story across customer segments. [17]
Even though that Bernstein note is not dated Dec. 17, it’s part of the same live debate influencing price action this week: whether Adobe’s AI-driven product cadence is translating into durable ARR expansion and pricing power.
The bigger Adobe backdrop: earnings were solid, but the market wants proof of AI monetization
This week’s tape is still heavily influenced by Adobe’s latest earnings and guidance, released last week.
Reuters reported that Adobe forecast fiscal 2026 revenue of $25.90 billion to $26.10 billion and adjusted EPS of $23.30 to $23.50, both slightly above consensus estimates cited by Reuters/LSEG. [18]
Reuters also emphasized that Adobe is seeing strong AI adoption, including freemium monthly active users growing 35% year over year to over 70 million, according to CFO Dan Durn. [19]
MarketWatch and Barron’s coverage of the earnings moment captured the market’s lingering skepticism: Adobe beat expectations, highlighted AI traction, and talked up its role in the AI ecosystem, but investors remain focused on how much incremental revenue AI features generate and how defensible Adobe’s moat is as AI lowers barriers for rivals. [20]
Product/news cycle check: Firefly video editing upgrades keep the AI drumbeat going
While not a “today after the bell” catalyst by itself, Adobe’s product news this week matters for sentiment.
Adobe published an update describing new Firefly capabilities for AI video creation, including additional tools and model options and an “unlimited generations” promotion window into mid-January 2026. [21]
TechCrunch also reported Adobe added a Firefly video editor supporting more precise prompt-based edits and expanded third-party model options. [22]
Investors will keep asking the same question: Do these updates increase ARPU / conversion / retention—or are they table stakes? That’s why the Street’s reactions are still mixed.
What to watch before the market opens Thursday, Dec. 18, 2025
Here’s the pre-market checklist that matters most for ADBE specifically.
1) The delayed U.S. CPI report at 8:30 a.m. ET is the macro event of the morning
The Bureau of Labor Statistics is scheduled to publish the November 2025 CPI report on Dec. 18, 2025 at 8:30 a.m. ET, after schedule disruptions tied to the 2025 lapse in appropriations. [23]
Two key nuances investors may miss:
- BLS explicitly warned the release won’t include certain one-month percent changes for November where October data are missing. [24]
- In other words, markets may treat CPI as high-importance—but also potentially messier-than-normal from a comparability standpoint.
Why Adobe cares: growth software multiples often trade off inflation and rate expectations. A CPI surprise can move the Nasdaq before Adobe ever prints a trade in regular hours.
2) Philly Fed manufacturing survey also hits at 8:30 a.m. ET
The Philadelphia Fed’s Manufacturing Business Outlook Survey is also slated for Dec. 18 at 8:30 a.m. ET. [25]
It’s not Adobe-specific, but it can feed into the same rates-and-growth narrative that drives software valuation sentiment.
3) Weekly jobless claims: another 8:30 a.m. ET input for rates
Thursday mornings typically bring weekly jobless claims, and market calendars for Dec. 18 list jobless claims among the morning releases. [26]
For Adobe investors, this matters mainly through the same channel: bond yields → discount rates → tech multiples.
4) After-hours AI sentiment: Micron’s blowout outlook could shift the tone
Even though Micron isn’t a “software comp,” it is a major AI supply-chain bellwether. On Dec. 17, Micron forecast revenue well above expectations and its shares rose in after-hours trading, per Reuters. [27]
If the market interprets Micron’s guide as “AI demand is real,” that can lift broad AI sentiment into Thursday—potentially supportive for the AI-themed part of Adobe’s story. If the market instead rotates toward hardware winners at the expense of software “AI monetization” laggards, it could be neutral-to-negative.
5) Company-specific watch: does Adobe respond to the lawsuit headline?
The most Adobe-specific thing to monitor into the open is whether the company issues a statement or whether follow-on reporting adds detail. Reuters said Adobe did not immediately respond to a request for comment on Wednesday. [28]
Any official response (or lack of one) can influence how the market prices the legal risk.
6) Technical levels from today’s range (simple, but useful)
From Wednesday’s tape alone, two levels naturally stand out:
- Near-term support zone: roughly the $348–$350 area (today’s low was $347.80) [29]
- Near-term resistance zone: around $358 (today’s high was $357.80) [30]
Traders often watch these levels into the next session, especially when after-hours is quiet and the next move is likely to be macro-driven.
Key date to know (because it can reset the narrative fast)
Adobe’s investor relations calendar lists the next major scheduled catalyst as the Q1 FY2026 earnings call on Thursday, March 12, 2026 (2:00 p.m. Pacific). [31]
Until then, the stock is likely to trade on:
- AI monetization datapoints,
- competitive headlines,
- legal/regulatory noise (like tonight’s lawsuit report),
- and macro/rates.
Bottom line for Thursday’s open
Adobe stock ended Dec. 17 higher in the regular session and stayed essentially flat after hours, but the setup into Thursday morning is shaped by two forces:
- Company-specific risk: a new proposed class action tied to AI training data, reported by Reuters. [32]
- Macro volatility risk: the delayed November CPI release at 8:30 a.m. ET, with BLS warning about missing October-linked calculations. [33]
If CPI drives yields lower and the market leans “risk-on,” Adobe could benefit—especially as analysts are still recalibrating targets and the AI product drumbeat continues. If CPI surprises hot (or uncertainty around the shutdown-affected data spooks markets), software multiples can compress quickly regardless of company fundamentals.
References
1. stockanalysis.com, 2. www.reuters.com, 3. stockanalysis.com, 4. stockanalysis.com, 5. stockanalysis.com, 6. stockanalysis.com, 7. www.reuters.com, 8. www.reuters.com, 9. www.reuters.com, 10. www.reuters.com, 11. www.reuters.com, 12. www.reuters.com, 13. www.gurufocus.com, 14. www.gurufocus.com, 15. www.gurufocus.com, 16. www.marketbeat.com, 17. finviz.com, 18. www.reuters.com, 19. www.reuters.com, 20. www.marketwatch.com, 21. blog.adobe.com, 22. techcrunch.com, 23. www.bls.gov, 24. www.bls.gov, 25. www.philadelphiafed.org, 26. tradingeconomics.com, 27. www.reuters.com, 28. www.reuters.com, 29. stockanalysis.com, 30. stockanalysis.com, 31. www.adobe.com, 32. www.reuters.com, 33. www.bls.gov
