Adobe Tumbles Most Since 2022 as AI Competition Heats Up
- Company gives sales outlook that falls short of estimates
- Software maker has been adding AI tools to main products
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Adobe Inc. tumbled 14% on Friday after a weak sales outlook for the current quarter fueled concerns that new AI startups are a competitive threat.
Revenue will be $5.25 billion to $5.3 billion in the period, the company said Thursday in a statement. Analysts, on average, projected $5.31 billion, according to data compiled by Bloomberg. Profit, excluding some items, will be as much as $4.40 a share, compared with analysts’ average estimate of $4.38.