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Analysts are downgrading Adobe Inc. (ADBE), Here’s What You Should Know

​Adobe Inc. (NASDAQ:ADBE) is one of the Profitable SaaS Companies for 2026. Analysts are downgrading Adobe Inc. (NASDAQ:ADBE) over concerns that AI might destroy the company’s business. The share price has fallen more than 42% over the past 12-months.

​Recently, on February 9, Ben Reitzes from Melius Research reiterated a Sell rating on the stock and lowered the price target from $310 to $270. Earlier on January 12, Gabriela Borges from Goldman Sachs downgraded Adobe from Buy to Sell with a $290 price target.

​Earlier, Reitzes from Melius had noted that the SaaS companies are at risk of being taken over by AI. The analyst highlighted that software companies can face multiple contractions as AI progresses. He pointed out that the Figma IPO has increased competition for Adobe amidst AI threats.

​In addition, Borges from Goldman based his cautious outlook on Adobe’s relatively weaker growth metrics compared to peers. He noted that the company shows 10% (next twelve months) revenue growth and 10% EPS growth as compared to 11% growth and 18% growth for its peers, respectively. This places Adobe at the bottom quartile for PEG valuation.

​Overall, Wall Street’s 12-month median price target still reflects more than 50% upside from the current level, with 55% analysts covering the stock maintaining a Buy rating.

​Adobe Inc. (NASDAQ:ADBE) is a global technology company that creates tools to help people and businesses design, manage, and deliver digital content.

While we acknowledge the potential of ADBE to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than ADBE and that has 100x upside potential, check out our report about this cheapest AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.

And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…

This prediction might not be bold at all:

A few years from now, you’ll wish you’d owned this stock.

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