"Adobe's Stock Plunge Linked to AI Competition and Disappointing Guidance"

Adobe Inc. saw its stock drop by as much as 12% in premarket trading after issuing a weak sales outlook for the current quarter, citing concerns about competition from new AI startups. The company's revenue forecast of $5.25 billion to $5.3 billion fell short of analysts' average estimate of $5.31 billion, leading to investor disappointment. Adobe has been integrating its proprietary AI model, Firefly, into products like Photoshop and Illustrator to address competition, but concerns about new generative AI-based startups like OpenAI have reignited fears. The company is aiming to monetize its new AI features and plans to increase these efforts in the second half of the year, while also announcing a new $25 billion share buyback program.