The value of Adobe shares fell by almost 10% on Friday, September 13, after the Photoshop developer released a disappointing quarterly earnings forecast, which provoked fears that returns from its push toward artificial intelligence design would become a scenario for a longer period of materialization compared to initial expectations.

The mentioned firm, which is one of the world’s largest software makers, is actively investing in image and video generation using machine intelligence. The company’s corresponding actions are largely related to its desire to maintain a leading position in the design software industry amid increased competition from well-funded startups such as Stability AI and Midjourney.

Last Thursday, September 12, Adobe released its revenue forecast for the fourth quarter. The company expects that the corresponding figure for the mentioned period will range from $5.50 billion to $5.55 billion. At the same time, analysts surveyed by LSEG predicted that Adobe’s revenue for the fourth quarter would be fixed at $5.61 billion.

If the current losses persist, the company’s market capitalization will decrease by about $25 billion. It is worth noting that this year the corresponding figure has fallen by almost 2%. At the same time, Adobe’s market capitalization grew by 77% in 2023.

Despite the disappointing revenue forecast, the company expects net new annual recurring revenue (NNARR) to exceed its expectations.

JPMorgan analysts said in a note that Adobe is a rare software developer that is growing net new bookings.

As we have reported earlier, Adobe Releases Acrobat AI Assistant.