Adobe Inc. (Nasdaq: Adbe) Reviewed significant download from Melius Research on August 11, 2025, As Analyst Ben Reitzes Shifted The Stock from Hold to Sell with to Lowered Price Target of $ 310 from $ 400.
The Downgrade Reflects Growing Concerns That Artificial Intelligence is Fundally Disrupting the Software-A-A-Service Model That Has Powered Adobe’s Growth For Years.
Reitzes Warned That “Ai is eating software,” Marking A Dramatic Reversal of the Traditional “Software Eating The World” Paradigm That Prior to the Benefited Saas Leaders. The Analyst Note That Software-As-A-Service Companies are experiencing the “Early Innings” OF MULTIPLE CONTRACTS DUE TO AI TECHNOLOGIES Reshaping The Competitive Landscape.
Adobe Shares Have Declined More than 20% Year-To-Date Alongsis Peers Like Atlassian and Salesforce. The Stock Is Now Trading Near ITS 52-Week Low of $ 332.01, With The Market Capitalization Standing AT Approximately $ 144.67 billion.
Competitive Pressures Mount
The Downgrade Comes Amid Intelligeing competition From Both Technology Giants and Ai-Native Applications. Companies Including Alphabet, Microsoft, Canva, and Midjourney Have Launched Competitive Ai Tools that Directly Challenge Adobe’s Market Position.
THE FAILED $ 20 BILLION FIGMA ACQUISITION HAS FURTHER COMPLATED ADOBE’S COMPETIVE STANDING, PARTICULAR AFTER FIGMA’S SUCCESSFUL IPO IN JULY 2025 VALUED THE COMPANY AT APPROXIMATELY $ 37 BILLION MORE THAN ADOBE’S ORIGINAL OFFER.
Figma’s ipo debut Saw Shares arises by a lot of 275% on the first day, Stabiling Around at $ 57 billion market valuation. This dramatic performance underscores The Missed Strategic Opportunity For Adobe, which paid at $ 1 billion termination fee when regulatory concerts forced the deal’s collapse in December 2023.
