Adobe Stock Downgraded As 'AI Is Eating Software'

Written by Emily J. Thompson, Senior Investment Analyst

CRM+1.47%

ADBE+0.32%

TEAM+5.45%

Source: Yahoo Finance

Updated: Aug 11 2025

5mins

Source: Yahoo Finance

Stock Downgrade: An analyst has downgraded Adobe's stock from hold to sell due to concerns about the company's performance in the evolving AI landscape.
Market Position: The downgrade reflects a belief that Adobe is losing its competitive edge as the digital media software market shifts towards artificial intelligence.

CRM.N

$260.410-3.312%Past 6 months

Line

Candle

YTD

Intellectia

Analyst Views on CRM

Wall Street analysts forecast CRM stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for CRM is 328.92 USD with a low forecast of 221.00 USD and a high forecast of 430.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.

41 Analyst Rating

28.16% Upside

31 Buy

9 Hold

1 Sell

Moderate Buy

28.16% Upside

Current: 256.650

Low

221.00

Averages

328.92

High

430.00

28.16% Upside

Current: 256.650

Low

221.00

Averages

328.92

High

430.00

Needham

replace

$50

2025-10-15

Reason

Needham

Price Target

$50

2025-10-15

replace

Reason

Needham adds Braze (BRZE) to the firm's Conviction List, replacing Salesforce (CRM). The firm also names the stock its Top Pick in Application Software while maintaining its Buy rating and $50 price target. Needham believes that the Customer Engagement/Marketing software space is likely the best sub-segment within Enterprise Software to monetize Gen AI functionality over the near term and believes that Braze's target customer will generally benefit the most from adopting much of the new AI functionality in the Customer Engagement space, the analyst tells investors in a research note. Over 50 recent customer conversations suggest a high level of Pilot/proof-of-concept testing and demonstrative value creation that will likely collide with the expected new budget appropriations in 2026, the firm added.

Northland

Nehal Chokshi

Outperform -> Market Perform

downgrade

$264

2025-10-14

Reason

Northland

Nehal Chokshi

Price Target

$264

2025-10-14

downgrade

Outperform -> Market Perform

Reason

Northland analyst Nehal Chokshi downgraded Salesforce to Market Perform from Outperform with a $264 price target.

Northland

Outperform -> Market Perform

downgrade

$396 -> $264

2025-10-14

Reason

Northland

Price Target

$396 -> $264

2025-10-14

downgrade

Outperform -> Market Perform

Reason

As previously reported, Northland downgraded Salesforce to Market Perform from Outperform with a price target of $264, down from $396. The firm's prior Outperform thesis that Agentic AI would enable App software makers to charge multiples of their current ARPU and that AgentForce positioned Salesforce to participate in the projected acceleration has failed to materialize, the analyst tells investors. One year since the firm's prior upgrade, constant currency cRPO growth, which it calls "the key metric CRM management points investors towards," has remained range bound between 10% and 11%, failing to accelerate to the mid-teens level the firm had projected at the point of its previous upgrade, the analyst noted.

Citi

Neutral

maintain

$275 -> $276

2025-09-09

Reason

Citi

Price Target

$275 -> $276

2025-09-09

maintain

Neutral

Reason

Citi raised the firm's price target on Salesforce to $276 from $275 and keeps a Neutral rating on the shares. The firm updated application software models following its technology conference. While the sector is not insulated from artificial inlteiignece, the worst-case bear concerns are likely overdone, the analyst tells investors in a research note.

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About CRM

Salesforce, Inc. is a provider of customer relationship management (CRM) technology. The Company helps organizations of any size reimagine their business for the world of artificial intelligence (AI). With Agentforce, its platform, organizations can bring humans together with AI agents to drive customer success on one deeply unified platform. With the Salesforce platform, it delivers a single source of truth, connecting customer data with integrated AI across systems, apps and devices to help companies sell, service, market and conduct commerce from anywhere. Agentforce is a new layer of the Salesforce platform that enables companies to build and deploy AI agents that can respond to inputs, make decisions and take action autonomously across business functions. Agentforce includes a suite of customizable agents for use across sales, service, marketing and commerce. Datablazer is a data-driven innovator, which leverages the Company’s platform to unlock insights and drive decisions.

About the author

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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.