New York, Jan 14, 2026, 11:45 ET — Regular session
- Adobe slipped roughly 1.7% in midday trading, following a steep decline the previous day
- Oppenheimer downgraded its rating, cautioning that generative AI might weigh on pricing and slow subscriber growth
- Apple will roll out its new Creator Studio subscription on Jan. 28, introducing a budget-friendly option for creators.
Shares of Adobe slid roughly 1.7% on Wednesday, building on losses from the day before as investors digested a fresh analyst downgrade alongside mounting competition in the creative software market.
The latest setback followed Oppenheimer’s downgrade of the Photoshop maker from “Outperform” to “Perform” and the removal of its price target. Analysts, led by Brian Schwartz, pointed to generative AI—software that creates content from prompts—as accelerating market shifts faster than many subscription models can handle. “Gen AI is increasing the velocity of content creation while lowering price and subscriber growth,” they wrote. (Investopedia)
The discussion intensified after Apple unveiled a new creative-app bundle called Apple Creator Studio, priced from $12.99 a month and scheduled to launch on Jan. 28. This move undercuts many existing professional software options. “Apple Creator Studio is a great value that enables creators of all types to pursue their craft,” said Eddy Cue, Apple’s senior vice president of Internet Software and Services, in a statement. (Apple)
Adobe shares hovered near $304.66, having dipped to $304.16 earlier in the session. On Tuesday, the stock wrapped up at $309.93.
Analysts and investors are zeroing in on whether AI tools will steer customers away from buying “seats”—fixed user licenses—and toward usage-based pricing, where fees depend on tasks or output. Such a shift could disrupt companies that rely on steady subscription revenues.
Oppenheimer highlighted competition from major language model providers and ad platforms rolling out creative tools, offering users cheaper alternatives to full Adobe licenses for certain tasks.
Apple’s approach differs from AI-native competitors, yet it tackles the same key issue looming over Adobe’s valuation: just how much will customers shell out for creative work when tools become cheaper, quicker, and simpler to master.
Apple shares slipped roughly 0.9%, while Salesforce also dropped around 0.9% on Wednesday, reflecting investor caution in parts of the software sector as they reevaluate pricing in the so-called “AI-era.”
Still, the trade isn’t one-sided for Adobe. AI could boost content output for companies and creators, driving up demand for editing, compliance, and workflow tools. The catch: higher volume might come with tighter margins, or customers might reduce paid seats if smaller teams manage more work.
Investors are eyeing Adobe’s upcoming quarterly report for clues on how AI features are impacting subscription growth and pricing power. The company’s investor relations calendar shows the Q1 FY2026 earnings call is set for Thursday, March 12, at 2:00 p.m. Pacific. (Adobe)
Adobe Summit, set for April 20–22 in Las Vegas and online, is another key date on the calendar. The company usually unveils product updates aimed at marketers and enterprise clients during this event. Preconference sessions kick off on April 19. (Adobe)
