Adobe Faces Growth and Regulatory Headwinds After Failed Figma Bid

Adobe's revenue growth is slowing down, suggesting its AI platform Firefly isn't driving growth yet. Total revenue up only 10% last quarter.

Adobe failed to acquire Figma, its main competitor, and had to pay a $1 billion termination fee. Now faces antitrust probe over subscription policies.

Adobe's core Digital Media segment, 73% of revenue, is struggling with macro and competitive pressures. Currency headwinds also reduced growth.

Adobe sees path to $1 trillion valuation by 2030 as unlikely given growth challenges, valuation concerns, and regulatory scrutiny.

Key focus should be on Adobe proving it can reaccelerate growth, get value from AI platform Firefly, and expand without triggering antitrust probes.