Adobe Shares Plummet 12% on Disappointing Forecast and Rising Competition Concerns

• Adobe shares fell 12% due to disappointing quarterly forecast and concerns about rising competition and AI efforts • Digital media segment forecasted $440M in new annual recurring revenue, below $470M last year • AI startups like Stability AI and Midjourney challenging Adobe's long-time dominance of graphics industry • Revenue forecast also below estimates; CEO said "expectations were perhaps a little higher" • Adobe announced $25B stock buyback months after shelving $20B Figma deal amid regulatory issues