Adobe drops as weak forecast fans worries about competition, AI efforts
Adobe's shares fell 12% on Friday as the company's lackluster quarterly forecast raised fears about strong competition and disappointed investors who were hoping for a boost from generative AI integrations.
Like other software firms Microsoft and Alphabet-owned Google, Adobe is being watched closely by Wall Street for its ability to make money from AI features that it has rolled out across its creative suite including Photoshop.
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Offering CollegeCourseWebsiteIIM KozhikodeIIMK Advanced Data Science For ManagersVisitIIM LucknowIIML Executive Programme in FinTech, Banking & Applied Risk ManagementVisitIndian School of BusinessISB Product ManagementVisit The company also faces competition from artificial-intelligence startups such as Stability AI and Midjourney that are looking to challenge Adobe's years-long grip of the graphics industry.
RBC Capital Markets analysts said the underwhelming second-quarter forecast from the Photoshop maker was sparking concerns among investors about the «GenAI upside.»
Adobe on Thursday forecast about $440 million in net new annual recurring revenue for the digital media segment, which houses its cloud products for documents and creative applications. Last year, the company had reported $470 million for the unit.
Its overall revenue forecast for the quarter was also below estimates, with CEO Shantanu Narayen saying that «expectations were perhaps a little higher… in terms of what we would guide for Q2».
If the premarket losses
