Adobe Inc. (ADBE) is down over 15% in 2025 due to trade tensions and tariffs.

From Yahoo Finance: 2025-04-29 10:27:00

Blue-chip stocks, including Adobe Inc. (NASDAQ: ADBE), are down over 15% in 2025 due to trade tensions and tariffs. The U.S. and China’s tariff war has sparked fear of a global recession. Analysts warn that President Trump’s tariffs could push the economy into a recession, affecting semiconductor stocks the most.

The semiconductor sector faces a potential recession from tariffs, leading to a freeze in the supply chain and lower order rates. Energy, industrials, and healthcare stocks are also struggling in the current trade war climate. Hedge funds are closely monitoring the situation and adjusting their investment strategies accordingly.

Adobe Inc. (ADBE) has seen a decline of 16.62% in share price return as of April 25, 2025. The company, known for its software and digital marketing solutions, is facing competition in generative AI content tools. Weaker-than-expected sales and earnings forecasts for Q2 and the full year have raised concerns about falling behind competitors in the AI sector.

Despite being ranked 10th in worst-performing blue chip stocks, ADBE holds potential as an investment. However, the market currently favors AI stocks for higher returns in a shorter timeframe. Analysts suggest exploring other AI stocks trading at a lower multiple of earnings for better investment opportunities.

Read more: Is Adobe Inc. (ADBE) the Worst-Performing Blue Chip Stock So Far in 2025?