TECH - Even The Untouchable Adobe Is Threatened By Intensified AI Competition | Benzinga
Adobe Inc (NASDAQ: ADBE) surpassed both top and bottom-line estimates, but shares tumbled 14% on Friday due to a weaker than expected sales outlook. This is Adobe’s biggest slump since 2022. The news also pulled down the stock of its industry peer Microsoft Corporation (NASDAQ: MSFT). The design software company is benefiting from the AI hype, but this technological development is also fueling its competitors. Moreover, the lackluster outlook is fueling concerns regarding the health of its Creative Cloud as well as its slower-than-expected pace of AI monetization.
Fiscal First Quarter Highlights
For the quarter that ended on March 1st, Adobe reported revenue rose 11% to $5.18 billion, barely surpassing Wall Street’s estimate of $5.14 billion. The digital media unit that is home to the company’s flagship offerings recorded a revenue growth of 12% as sales reached $3.82 ...