Adobe Stock Hits Multi‑Year Lows as AI Threats Prompt Aggressive Marketing Shift

Overview

• Shares fell to about $271 intraday this week, the lowest since 2019, after fresh downgrades and anxiety over Anthropic’s new automation tools challenging Adobe’s creative suite.
• Adobe lifted 2025 advertising to roughly $1.4 billion and hired CMO Lara Balazs to drive AI‑focused campaigns for Express and Firefly.
• The company is promoting adoption with unlimited Firefly generations through March 16 and reports tens of billions of uses for its AI tools.
• Analyst sentiment has cooled, with UBS, Baird, and BMO cutting targets, a BMO downgrade to Market Perform, and a consensus Hold rating averaging about $391.81.
• Product decisions are in flux as Adobe plans to shut down Animate on March 1, faces user criticism, and moves forward with a Semrush shareholder‑approved deal, while recent results beat estimates and guidance remains intact.