Software Stocks Plummet as AI Advances Threaten Major Players like Intuit and Adobe
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 20 2026
0mins
Should l Buy ADBE?
Source: CNBC
- Market Leadership Shaken: Major software companies like Intuit, ServiceNow, GoDaddy, AppLovin, and Adobe have become the worst performers in the S&P 500 this year, reflecting investor concerns that AI advancements may disrupt the enterprise software market.
- Pricing Model Risks: The rise of AI agents threatens traditional 'per-seat' subscription models, potentially undermining predictable revenue streams for software companies and diminishing investor confidence in these stocks.
- Cost Decline Expectations: Analysts predict that as coding costs approach zero, barriers to deploying enterprise software will be lowered, allowing AI to better understand context and driving the adoption of software solutions.
- Investor Sentiment Volatility: Despite the current sell-off in software stocks, analysts believe this trend may be short-lived, as further AI integration and revenue acceleration by software companies could improve market sentiment.
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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: 260.450
Low
270.00
Averages
431.08
High
660.00
Current: 260.450
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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