Morgan Stanley Downgrades Adobe to Underweight, Slashes Price Target to $240 Amid AI and Execution Concerns
Morgan Stanley warns about the impact of generative AI, Adobe’s freemium strategy, and ongoing leadership transitions.
Morgan Stanley warns about the impact of generative AI, Adobe’s freemium strategy, and ongoing leadership transitions.
BofA sees Adobe hurt by AI, while Figma and Shopify could benefit as AI boosts creativity, collaboration, and online commerce.
The upgrade highlights Adobe’s resilience to AI disruption and its attractive valuation.
Adobe reported strong Q2 results and raised its full-year guidance, but shares fell after the company announced that CFO Dan Durn will step down on June 15 to pursue a new opportunity.
U.S. President Donald Trump disclosed hundreds of millions in stock trades in Q1 2026 — heavy buys in Nvidia, Microsoft, Adobe, ServiceNow and more during the tech selloff.
Mizuho downgraded Adobe on AI competition fears, but upgraded CrowdStrike for strong AI security growth and better outlook.