Adobe (Adbe) stocks have been slid at the end of the week. This is because stock investors are worried about the revenue from the company’s AI adoption. The company raised its annual revenue forecast, but analysts were concerned that adopting AI in its software tools could take some time to obtain returns.
Angelosino, senior equity analyst at CFRA Research, said: Adobe said in April that it would add AI models to Firefly from Openai and Google. It sounds like a solid addition, but there are concerns that it will take too long to make a profit, taking into account Adobe’s investments. Adobe currently expects 2025 revenues of between $23.5 billion and $23.5 billion to $23.55 billion for 2025.
“While guidance has been raised and management on demand generation remains positive, we feel it will take more time to prove quiet concerns about these (AI) initiatives and competition around Genai,” RBC analysts said in an investor’s note. Several brokerages lowered their price targets for Adobe stocks following their second quarter results.
However, according to analysts at CNN, this may be a solid time to invest in Adobe Adbe. Currently, stocks are below the 200-day moving average, so Adbe may be in a Buy-the-Dip situation. Of the 42 analysts surveyed by CNN, 67% suggested holding ADBE, while 31% suggested purchasing. Analysts forecast a median rise of 23% over the next 12 months, at $630 per share from a high-end forecast of 61.93%.
