US Stock Market Move | Target price slashed by institutions, Adobe (ADBE.US) falls more than 4%, accumulated decline of nearly 16% this year.

On Wednesday, Adobe (ADBE.US) fell more than 4%, accumulating a nearly 16% decline for the year, closing at $374.78. On the news front, this struggling software giant received its first sell rating in months. Analyst Omar Sheikh from Rothschild & Co Redburn downgraded the stock from neutral and lowered the target price from $420 to $280 in a research report on Wednesday, stating that generative artificial intelligence tools are eroding Adobe's advantage in content creation software. Adobe, the manufacturer of creative and document management solutions like Photoshop and Acrobat, has always dominated all stages of the content creation process among its professional users - from ideation to editing to workflow. However, the proliferation of generative AI tools is now threatening the company's position, as Sheikh believes these tools can convert text into images and videos. Analysts point out that Imagen, Alphabet Inc. Class CDeepmind's image generator, and OpenAI's video generation model Sora, have become the preferred choice for professionals starting creative projects.