Adobe’s 2026 Meltdown: Buying opportunity or value trap?

Adobe's stock plunged ~21% in six trading sessions following its latest earnings report, hitting an eight-year low, despite quarterly revenue of $6.62 billion and adjusted EPS of $5.96 both beating estimates. The selloff reflects investor concerns over AI-driven disruption, intensifying generative AI competition, and simultaneous leadership transitions with CEO Shantanu Narayen and CFO Dan Durn both announcing departures. Several Wall Street firms have cut price targets, questioning Adobe's AI monetisation, pricing power, and near-term growth outlook.