Melius Research Downgrades Adobe (ADBE) to Sell

Adobe Inc. (NASDAQ:ADBE) is one of the Most Profitable Large Cap Stocks to Buy According to Analysts. On August 11, Melius Research analyst Ben Reitzes downgraded Adobe Inc. (NASDAQ:ADBE) from Hold to a Sell Rating with a price target of $310.

The analyst noted that the software-as-a-service companies are at risk of being eaten by artificial intelligence. He noted these companies are in the early innings of multiple contractions due to AI. The firm sees SaaS companies losing to the shift towards infrastructural winners. He also highlighted increased competition from the Figma IPO as a threat to Adobe Inc. (NASDAQ:ADBE).

Despite the bearish sentiment, Adobe Inc. (NASDAQ:ADBE) during its fiscal second quarter of 2025 exceeded Wall Street estimates. The company posted $5.87 billion in revenue, reflecting a 10.62% increase year-over-year and ahead of consensus by $73.73 million. The EPS of $5.06 also exceeded expectations by $0.09.

Adobe Inc. (NASDAQ:ADBE) is a global technology company that creates tools to help people and businesses design, manage, and deliver digital content.

While we acknowledge the potential of ADBE as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.