On Wednesday evening, Adobe Inc. (ADBE) released its quarterly financial results:
→ Earnings per share: Actual = $4.81, Expected = $4.66;
→ Revenue: Actual = $5.61 billion, Expected = $5.54 billion.

Despite exceeding analyst expectations and showing growth compared to the previous quarter, Adobe’s stock opened Thursday with a bearish gap and continued to decline throughout the session, closing more than 13% lower than Wednesday’s close.

The sell-off was driven by Adobe’s disappointing 2025 forecast, projecting slower-than-expected revenue and earnings per share growth. According to Yahoo Finance, this stems from increasing competition (from Google, OpenAI, and others) and concerns over monetising AI tools, which have already contributed to a 20% drop in Adobe’s stock this year.

Technical Analysis of Adobe Inc. (ADBE) Stock

The stock price is:
→ Forming a descending channel (highlighted in orange), with its boundaries becoming increasingly evident;
→ Breaking below both a long-term trendline (marked with an arrow) dating back to 2022 and the psychological level of $500 per share.

The outlook appears grim, although TipRanks data indicates that analysts remain optimistic:
→ 22 out of 30 analysts recommend buying ADBE stock;
→ The average price target for ADBE is $603 within 12 months, suggesting a 27% upside from current levels.

However, Adobe’s 2025 projections amidst stiff competition may prompt a reassessment of its investment value, potentially leading to a consolidation of ADBE’s price below the $500 psychological threshold.

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