Adobe Stock Plummets as AI Threatens Creative Cloud Moat

Adobe's stock falls to $250.56 after trading 11.5 times forward earnings. Creative Cloud faces competition from Canva with 260 million monthly active users and Figma targeting enterprise design. Adobe's gross margin remains 88.77% and generated $10 billion in free cash flow last year. The company's ARR grew 11% on a subscription model despite AI-driven pricing concerns.