Adobe Inc. (NASDAQ:ADBE) was downgraded by Jefferies on January 5 to “Hold” from Buy with a price target of $400, down from $500. Despite increasing AI tool adoption, limited monetization has been a challenge due to competition. Jefferies advised investors to stay underweight in software as growth slows. While Adobe faces competitive pressure in the lower-end market segment, its business remains strong among creative professionals. Adobe has seen increased AI feature adoption, but monetization remains a focus amid rising competition. The company’s AI-influenced ARR exceeded one-third of overall business in FQ3.

Read more at Yahoo Finance: Analysts Say Adobe’s (ADBE) AI Tools Are Popular, but Competition Is Intensifying