Adobe Stock Rises Pre-Market, Draws Investor Attention As Wall Street Cheers AI Integration

Adobe (ADBE) stock rose nearly 3% before the bell on Friday and became one of the top four trending tickers on Stocktwits after Wall Street sounded bullish on the company's prospects regarding the integration of artificial intelligence (AI) as part of its core business.

D.A. Davidson maintained a 'Buy' rating and a $500 price target on Adobe after its third quarter results, according to TheFly. The firm added that, even though the company is fighting an uphill battle to disprove the narrative that AI poses a threat to its core value proposition, this quarter's results speak otherwise.

The brokerage noted that this quarter's outperformance relative to expectations, along with the early achievement of $250 million in AI-first annual recurring revenue, suggests that Adobe is effectively driving adoption of its expanding AI-infused product portfolio.

Retail sentiment on Adobe remained unchanged in the 'extremely bullish' territory, with message volumes at 'extremely high' levels, according to data from Stocktwits.

Adobe reported its third-quarter results after the closing bell on Thursday, which beat expectations and also raised its annual forecasts.

Barclays raised its price target on Adobe to $465 from $460 and maintained an 'Overweight' rating. The firm noted that Adobe reported net new annual recurring revenue of $500 million, which exceeded the upside case. The firm added that its AI-first annual recurring revenue effectively doubled in two quarters.

A user on Stocktwits noted that AI tools are clearly paying off, but the only risk is valuation.

Meanwhile, BMO Capital lowered its price target on Adobe to $405 from $450 and maintained an 'Outperform.' The firm noted solid third-quarter performance, although questions surrounding durable growth will likely persist, including how Adobe will try to more fully optimize AI in fiscal 2026 to drive revenue growth rather than user adoption. BMO Capital added that it retains its positive rating on the stock due to valuation.

Shares of Adobe have declined over 21% this year and jumped nearly 35% in the last 12 months. 

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