Overview
- Adobe shares traded in the low $230s this week, leaving the stock close to its 52-week low after a months-long slide.
- A William Blair downgrade followed earlier target cuts from Citi and Goldman Sachs, extending pressure on the shares.
- Fiscal Q1 revenue rose 12% to $6.4 billion, with subscription revenue up 13% to $6.2 billion, reflecting solid near-term demand.
- Management said annualized recurring revenue from AI-first products more than tripled year over year, pointing to fast adoption of new tools.
- Regulatory risk grew as the UK competition watchdog opened a probe into early cancellation fees after a recent $150 million U.S. settlement.