U.S. online holiday spending growth slowed in the 2025 season, Adobe Analytics data showed on Wednesday, even as shoppers set a record on the back of steep discounts and wider use of buy-now-pay-later plans.
Adobe (ADBE) stock has experienced a 5-day losing streak, with total losses during this timeframe reaching 6.3%. The company's market capitalization has declined by approximately $9.4 billion over the past five days and now sits at $140 billion.
Tech stock Adobe Inc (NASDAQ:ADBE) is slipping today, down 1.4% at $328.76 at last glance, after a downgrade from Jefferies to "hold" from "buy.
U.S. stock futures are trading in negative territory to start the last trading day of 2025. Wall Street ended in the negative zone in the last three trading days.
U.S. stock futures are trading in negative territory to start the last trading day of 2025.
Artificial intelligence (AI) has remained a prominent theme of 2025, and for the past three years, no other trend has garnered as much attention as AI.
Adobe (ADBE) delivered strong Q4/FY25 results, driven by double-digit growth and robust AI-infused product momentum. AI-first ARR now represents nearly a third of ADBE's business, with generative credit consumption up 3x QoQ and Firefly adoption accelerating. Management guided for FY26 revenue growth of up to 9.8% and Non-GAAP EPS growth of 12.3%, with record-high new ARR guidance.
Alphabet's AI momentum in Search and Cloud gives it an edge, while Adobe faces rising competition despite solid growth targets.
ADBE's AI push gets a lift from deepening ties with Google, OpenAI and others, plus a strategic video tech deal with Runaway.
Adobe (ADBE) has been one of the stocks most watched by Zacks.com users lately. So, it is worth exploring what lies ahead for the stock.
Adobe Inc. demonstrates robust fundamentals: FY2025 revenue up ~10%, gross margins near 90%, and net income up 28%, yet trades at a 29% five-year share price decline. ADBE's forward P/E of 19.44x is ~38% below sector median, presenting an attractive valuation relative to peers like INTU and APP. Strategic partnership with Alphabet integrates multi-model AI into Adobe's suite, fueling over $5 billion in AI-influenced ARR and supporting future growth.
The AI threat has led storied software stocks like Salesforce and Adobe to trade near their cheapest levels in years. Analysts are divided on which names will re-emerge as winners.