Key Stats for Adobe Stock
- Price change for Adobe stock in last 6 months: 0%
- $ADBE Stock Price as of Oct. 13: $236
- 52-Week High: $364
- $ADBE Stock Price Target: $272
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What Happened?
Adobe (ADBE) stock was slightly lower after an HSBC downgrade.
Analyst Stephen Bersey cut his rating from Buy to Hold and lowered his price target to $267 from $310.
The trigger was a report about ArtCraft, a small developer, which reportedly released free, open-source alternatives to several Adobe apps.
These include Photoshop, Illustrator, Premiere, Lightroom, Acrobat, After Effects, and InDesign. ArtCraft reportedly aims to match Adobe’s features within a month.
Bersey also flagged security and legal risks. He said AI-generated code can be risky with little human oversight.
He warned that open access to source code could expose software to zero-day flaws, security holes exploited before developers can fix them.
He advised against downloading ArtCraft.
The report says the impact on Adobe’s business remains uncertain. Still, free tools could pull in users who want to avoid paying.
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What the Market Is Telling Us About Adobe Stock
The market reaction was mild, with ADBE stock falling less than 1%.
That suggests investors see this as a headline risk, not a business problem yet.
Last quarter, revenue was $6.76 billion, up 12% in constant currency. Non-GAAP earnings per share rose 15% to $ 6.13.
Adobe also raised its full-year targets and now expects non-GAAP EPS of $24.45 to $24.50.
The company says its AI products are growing fast. AI-first ending ARR is above $650 million, up more than 150% from a year ago.
Its free creative user base has passed 100 million monthly users, up over 70%.
Analysts on the call noted that RPO growth slowed to 8%, the first single-digit pace since early fiscal 2023.
One analyst said net new ARR fell 36% to 37% from a year ago. Management said the freemium push is the reason.
Adobe is also changing leadership, with Anil Chakravarthy taking over as CEO on December 1.
For now, Adobe stock faces a new debate. Can its tools stay ahead of free AI-built rivals? The HSBC call adds to that worry, but Adobe’s recent numbers still look healthy.
The company has said it will share more at its Adobe MAX conference in November.
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So what is Adobe stock actually worth?
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
