Adobe’s AI Struggle Is Common, But Unfortunate For Becoming A Standout

Summary:

  • Adobe has fallen into the commodity status of AI products, facing the same pitfalls as other AI tech giants.
  • The combination of common flawed generative AI with its slow rollout and execution puts it doubly behind.
  • While management says it’s internally on track with its AI tools and integration, guidance isn’t proving it’s enough.
  • Underwhelming guidance and the bearish stock chart likely mark a top in the stock, forcing me to a sell rating instead of a hold.
AI prompt in chat screen. Artificial intelligence in generative chatbot. Command to generate text or image with new tech. Digital robot technology in computer.

Tero Vesalainen/iStock via Getty Images

The AI (artificial intelligence) landscape has many facets and variables, and they’re each reaching the forefront as the AI world evolves. One of the higher level facets is the positioning of businesses in the AI world – is a company a producer of the hardware needed


Analyst’s Disclosure: I/we have a beneficial long position in the shares of ADBE, NVDA, META either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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