Adobe and Other Software Stocks Face Demand Suppression, Down 55%
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 20 2026
0mins
Should l Buy ADBE?
Source: Benzinga
- Demand Suppression Phenomenon: Analyst Jordi Visser indicates that the current decline in enterprise software stocks is not a cyclical pullback but rather AI-driven demand suppression, with Adobe, Salesforce, and ServiceNow down 55%, 40%, and 45% from their peaks, reflecting a contraction in market demand for software.
- Structural Changes in Software Market: As AI technology advances, the cost of generating and modifying software approaches zero, making traditional internal development models unviable, which leads to reduced spending on software procurement and impacts the revenues and valuations of related companies.
- Misconception of Low Valuations: Visser compares the current low valuations of software stocks to the effects of appetite-suppressing drugs, arguing that low valuations do not signify investment opportunities but rather reflect a contraction in software usage, prompting companies to reassess their software procurement and usage strategies.
- Organizational Adaptability Challenges: Large software companies lag behind the rapid pace of AI advancements, with Visser noting that enterprise software firms are no longer just competing with each other but with the speed of AI capability improvements, a structural mismatch that could further erode their market share.
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Analyst Views on ADBE
Wall Street analysts forecast ADBE stock price to rise
26 Analyst Rating
13 Buy
11 Hold
2 Sell
Moderate Buy
Current: 241.370
Low
270.00
Averages
431.08
High
660.00
Current: 241.370
Low
270.00
Averages
431.08
High
660.00
About ADBE
Adobe Inc. is a global technology company. The Company's products, services and solutions are used around the world to imagine, create, manage, deliver, measure, optimize and engage with content across surfaces and fuel digital experiences. Its segments include Digital Media, Digital Experience, and Publishing and Advertising. The Digital Media segment is centered around Adobe Creative Cloud and Adobe Document Cloud, which include Adobe Express, Adobe Firefly, Photoshop and other products, offering a variety of tools for creative professionals, communicators and other consumers. The Digital Experience segment provides an integrated platform and set of products, services and solutions through Adobe Experience Cloud. The Publishing and Advertising segment contains legacy products and services. In addition, its Adobe GenStudio solution allows businesses to simplify their content supply chain process with generative artificial intelligence (AI) capabilities and intelligent automation.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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