Adobe Results Seen as ‘Make-or-Break’ to Prove AI Credentials
- Stock is down 7.9% this year, underperforming software index
- Investors want to see proof that AI tools will make money
Adobe has been adding its proprietary AI technology, Firefly, to products like Photoshop and Illustrator.
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Adobe Inc. is running out of time to show investors it can be a winner in the artificial intelligence era.
The shares are down 7.7% this year, underperforming an index that tracks the software sector, which is up more than 30%. And after last quarter’s guidance disappointed Wall Street, the pressure is on for results due after Wednesday’s market close. Adobe needs to demonstrate it can make money from its AI tools and stand up to rising competition from generative AI platforms that create images and videos from user prompts.