Adobe (ADBE) Downgraded by Analysts Amid AI Concerns Over Business Model

Analysts have downgraded Adobe Inc. (ADBE) stock, citing concerns that advancements in artificial intelligence could negatively impact its core business model. Melius Research and Goldman Sachs, among others, have reiterated 'Sell' ratings for ADBE. These firms also lowered their price targets for the software giant, following a period of significant stock decline. The primary apprehension revolves around AI's potential to disrupt Adobe's traditional revenue streams and future profitability. Despite these recent downgrades, Wall Street's 12-month median price target for ADBE still indicates a substantial upside potential for the stock. This suggests a divided outlook among analysts regarding Adobe's long-term prospects in an evolving technological landscape.