Adobe Stock Hits 8-Year Lows as Wall Street Questions AI Monetization Strategy

Shares of Adobe Inc. (ADBE) fell more than 6% in pre-market trading on Friday, reaching their lowest levels since March 2018, after Wall Street raised concerns about the company's freemium AI strategy's impact on near-term revenue and AI monetization prospects.

Jefferies lowered its price target to $230 from $290 and maintained a 'Hold' rating, stating the shift to acquire freemium customers "leaves AI monetization unanswered" and sees no short-term catalyst. Bernstein cut its target to $379 from $447, citing CEO and CFO transitions compounded by delayed monetization initiatives. Evercore downgraded Adobe to 'In Line' from 'Outperform,' slashing the price target to $225 from $325, noting investor sentiment is unlikely to improve until new leadership takes office.