Back to News
Sep 24, 2025 4:00 PM

Adobe Shares Are Trading Lower Wednesday: Here's What Sparked The Sell-Off

Shares of Adobe Inc (NASDAQ:ADBE) are moving lower on Wednesday after Morgan Stanley downgraded the stock and cut its price target.

What Happened: Morgan Stanley lowered its rating on Adobe from Overweight to Equal-Weight while reducing its target price to $450 from $520. Analyst Keith Weiss pointed to concerns about the company’s path to Digital Media annual recurring revenue (ARR) growth acceleration, as well as potential AI displacement risks.

The Morgan Stanley analyst noted that decelerating Digital Media ARR growth since the first quarter of 2024 presents “optically ...