Negative: Jim Cramer warns of economic risks of proposed tariffs, mentions Adobe facing tough AI competition.

From Yahoo Finance: 2025-04-04 18:13:00

Jim Cramer discusses the economic risks of President Trump’s tariffs on ‘Liberation Day’. He warns of severe consequences for consumers and the economy. Cramer highlights the potential disruption of a proposed 20% tariff on all imports and questions the impact on American industries. He criticizes the lack of clarity and coordination in the administration’s policy rollout. Cramer also notes the concern over inflation and the potential exacerbation by tariffs. Additionally, he mentions 17 stocks discussed on Mad Money, including Adobe Inc. (NASDAQ:ADBE) facing competition from generative AI. Adobe’s stock is down nearly 35% from its high. Adobe is heavily investing in generative AI, facing competition from newer AI-native tools. Despite challenges, Adobe’s Firefly platform gained traction. However, concerns about monetization led to underwhelming earnings reports. Adobe prioritizes widespread adoption over immediate monetization, focusing on untapped consumer markets. The subscription-based model ensures stable cash flows and high margins. While ADBE ranks 13th on Jim Cramer’s list, some AI stocks may offer higher returns in a shorter time frame. Investors looking for promising AI stocks can explore alternatives. Adobe’s long-term growth prospects remain strong despite short-term challenges.



Read more at Yahoo Finance: “Firefly’s a Lamborghini, But AI Competition Is Brutal!”