15 Stocks on Jim Cramer’s Radar

2. Adobe Inc. (NASDAQ:ADBE)

Number of Hedge Fund Holdings: 88

Adobe Inc. (NASDAQ:ADBE) is another software firm that has struggled in the age of AI. Its shares are down by 33% over the past year and by 12.5% year-to-date. January has seen several analysts share their thoughts on Adobe Inc. (NASDAQ:ADBE). Jefferies cut the share price target to $400 from $500 and reduced the rating to Hold from Buy. The financial firm discussed Adobe Inc. (NASDAQ:ADBE)’s lower-end market and remarked that the firm appeared to be facing competitive pressures in the sector. However, it added that the software company was nevertheless favored by professionals. Nevertheless, the age of AI has left Jefferies doubtful about whether Adobe Inc. (NASDAQ:ADBE) can deliver high growth figures. BMO Capital also downgraded the shares in January. It reduced the rating to Market Perform from Outperform and cut the share price target to $375 from $400. BMO pointed towards its Creative Cloud survey and used the data to indicate that Adobe Inc. (NASDAQ:ADBE) was experiencing tough market competition. Cramer discussed Apple’s recent launch of its Creator Studio Suite and the impact on the firm:

“Well, look a lot of people just feel that the seat method, charging by the seat, that’s not the way. . .is being compressed. That a lot of the people who would use Salesforce product are not needed because you can now recreate. This is the Adobe problem.

“There is degradation to Adobe. And by the way Apple put out a very competitive product to Firefly the other day, I think. I may have to cancel my subscription.”