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# Despite a Bleak Perspective and a Stock Crash, Experts are Still Optimistic About Adobe’s AI Development
### Main Points
* Adobe’s equities suffered a significant setback on Thursday because of a dismal business forecast.
* However, experts remain hopeful, emphasizing the company’s capacity for AI-driven expansion.
* The upcoming Adobe Summit is anticipated to provide additional AI-related news.
Adobe (ADBE) saw a considerable stock fall on Thursday as its forecast did not live up to expectations. However, experts are maintaining faith, emphasizing the company’s capacity for development fueled by artificial intelligence.
Jefferies experts voiced astonishment at the stock’s dramatic fall following the earnings announcement. They think the results were robust enough to offset the disadvantages, adding that AI adoption trends are favorable, and Adobe is on pace for AI-driven income growth. The experts maintained a “Buy” rating on the stock with a target cost of $650, implying a potential upside of over 70% from Thursday’s intraday levels.
BofA Securities experts reduced their cost target from $605 to $528 but maintained a “Buy” rating. They predict that Adobe is “advancing toward” improved AI monetization. The experts highlighted increased monthly active users for generative AI in both Photoshop and Lightroom during the quarter.
According to AlphaSense’s business earnings call transcripts, Adobe reported an annualized recurring income of $125 million for AI as of the end of the quarter. CEO Shantanu Narayen stated that he anticipates this number to double by the end of fiscal year 2025.
More AI news is anticipated at the upcoming Adobe Summit, which one expert previously suggested could be more informative than the quarterly results. Toncoin (TON) Value Forecast for March 26th
Adobe’s stock fell by over 13% to $379.28 during intraday trading on Thursday. Over the previous 12 months, the stock has lost about one-third of its value.
The following details originate from conversations with seasoned professionals in the field, individual narratives, official statistics, and authoritative reports. We sometimes allude to unique investigations from other well-regarded sources. Further specifics about our dedication to delivering unbiased and precise material can be located within our publishing standards.
In particular, we’ve utilized perspectives derived from:
1. Jefferies’ analysis, “Adobe: Gradual AI Growth and Ongoing Implementation.”
2. Bank of America Securities’ assessment, “Adobe: Q1 Basics Consistent, Observing Indications of Firefly Profit Generation.”
