Adobe Results Risk Cementing AI Loser Status as Stock Slides

Core Viewpoint - Adobe Inc. is facing significant challenges in the current AI-driven market, with expectations of slower growth and increasing competition from AI companies [1][2][3] Company Performance - Wall Street anticipates a full-year sales growth forecast of nearly 10%, which would be the slowest for Adobe in over a decade [2] - Adobe's fiscal third quarter earnings report is expected to show revenue growth of 9.3% and net earnings per share growth of 7% [5] Market Position and Competition - The rise of AI applications poses a threat to Adobe's core business, particularly in areas like image generation that can replace traditional software [3][4] - Adobe's stock has declined over 20% this year and has seen a significant drop since the end of 2023, while an ETF tracking software stocks has risen over 40% [4] Investor Sentiment - Investors remain cautious about Adobe, as its past four earnings reports have led to selloffs, highlighting ongoing concerns about AI's impact [6] - Analysts suggest that Adobe faces some of the most existential risks from AI compared to other large software companies [6]