Adobe Inc. shares declined 1.4% to $253.66 during Thursday afternoon trading, extending recent losses for the creative software giant. The stock traded between $251.23 and $261.75 as market participants remained cautious ahead of Friday's inflation report.
The broader software sector underperformed, with the S&P 500 software and services index falling approximately 2.7%. Market analysts attribute the weakness to dual concerns: potential disruption from artificial intelligence technologies and uncertainty about the Federal Reserve's interest rate path.
"This has become a 'prove it' year for AI investments," noted one portfolio manager. "After significant capital expenditures, investors are looking for clearer returns on these initiatives." Recent developments in AI, including new platform integrations from competitors, have contributed to sector volatility.
Adobe shares have now declined for five consecutive sessions and sit approximately 44.8% below their 52-week high of $465.70 reached in February 2025. Trading volume has been elevated, suggesting heightened investor attention.
The company previously projected fiscal 2026 revenue between $25.90 billion and $26.10 billion, with adjusted earnings per share expected to range from $23.30 to $23.50. These forecasts incorporate anticipated demand for Adobe's design software and growing AI offerings.
Market participants now await two key events: Friday's Consumer Price Index data, which could influence interest rate expectations, and Adobe's first-quarter earnings call scheduled for March 12. Guidance on AI monetization and pricing strategies may prove more significant than headline financial figures.
