New York, Jan 14, 2026, 19:00 ET — After-hours
- Adobe shares fell 1.8% to $304.44, deepening a steep two-day drop.
- Analysts are growing more cautious about AI monetization amid intensifying competition in creative tools.
- Coming up: Apple’s Creator Studio drops Jan. 28, followed by Adobe’s earnings call on March 12.
Adobe Inc (ADBE.O) slipped for a second day on Wednesday, ending down 1.77% at $304.44. The Photoshop creator trailed a soft tech sector, with investors cautious about growth prospects and mounting competition.
Adobe’s shares have slid to their lowest since November 2022, now trading at about 12 times forward cash flow—essentially what investors expect the company to generate in the next year. Rob Oliver of Baird calls the stock cheap but notes doubts around Adobe’s $250 million-plus AI-related annual recurring revenue, a key subscription figure. Meanwhile, Oppenheimer’s Brian Schwartz downgraded the stock, citing weaker investor communication and slower growth in core subscriptions.
Oppenheimer’s downgrade has intensified the debate over generative AI’s role as either a boost or a pricing threat. “Gen AI is ramping up the pace of content output while driving down prices and subscriber growth,” analysts led by Schwartz noted. They also cautioned that the traditional seat-based pricing—charging per user license—might come under fire if usage-based pricing, where customers pay per use, gains traction in software. Investopedia
Competition isn’t limited to start-ups. Apple plans to roll out an “Apple Creator Studio” subscription on Jan. 28, priced at $12.99 per month. The package includes apps like Final Cut Pro, Logic Pro, and Pixelmator Pro. Eddy Cue, Apple’s services chief, described it as “a more flexible and accessible way to get started.” This bundle undercuts Adobe’s $69.99 monthly Creative Cloud Pro plan, according to The Verge.
On Wednesday, Adobe’s shares fluctuated from $302.52 up to $311.27, with roughly 5.7 million shares traded. After-hours, the stock was last seen at $304.44.
Baird cut its price target on Adobe to $350 from $410, maintaining a neutral rating, MT Newswires reported.
Wall Street’s major indexes dipped again, pressured by big bank earnings and new economic data that failed to alter bets on rate cuts this year, according to a Reuters report.
A low multiple alone won’t drive a turnaround. Adobe needs to prove its AI features are boosting renewals and attracting new subscribers for the stock to find steady ground. Otherwise, falling prices on bundles and rapidly advancing generative tools will continue to squeeze margins and slow user growth.
Investors are watching Adobe Summit, set for April 20–22 in Las Vegas and online. The event serves as a stage for Adobe to showcase product plans and market its platform to enterprise clients.
Adobe’s fiscal 2026 first-quarter earnings call is set for March 12 at 2 p.m. Pacific, per the company’s investor relations calendar.
