10 Stocks That Will Collapse Because of AI

8. Adobe Inc. (NASDAQ:ADBE)

In April, 3 financial services firms cut their price targets for Adobe Inc. (NASDAQ:ADBE). Starting with the latest update on April 16, Keith Weiss from Morgan Stanley lowered the firm’s price target on the stock from $425 to $365 while keeping a Hold rating. The firm’s downward-adjusted price target suggests further 44% upside from the current levels. On the same day, RBC Capital analyst Matthew Swanson also lowered the firm’s price target on Adobe Inc. (NASDAQ:ADBE) from $400 to $350 and maintained a Buy rating on the shares. The recent shift in analyst sentiment, paired with the stock’s underperformance over the last year and this year, highlights that risks remain.

Earlier, on April 13, BTIG analyst Nick Altmann started coverage of Adobe Inc. (NASDAQ:ADBE) with a Neutral rating. According to the firm, AI is raising several questions about the future of the creative ecosystem. This is leading to concerns about the company’s long-term revenue growth and margin outlook. The firm also said it needs greater clarity on how artificial intelligence will shape the creative industry and affect Adobe’s financial profile before taking a more positive stance on the stock.

Adobe Inc. (NASDAQ:ADBE) is a technology company operating globally. The company operates in the Digital Media, Digital Experience, and Publishing & Advertising segments. It is based in San Jose, California, and was incorporated in 1982.