Why has Adobe's stock dropped significantly?

Adobe's stock has fallen over 50% since early 2024 as investors question its ability to thrive amidst the rise of artificial intelligence.

How much did Adobe spend on advertising in 2025?

Adobe increased its advertising spending in 2025 to $1.4 billion, a rise of over 30% from the prior year.

What are Adobe's own AI tools?

Adobe is promoting its own AI tools, including features in Acrobat for generating reports and visualizations, and its AI video generator, along with the Firefly family of AI models.

Home / Business and Economy / Adobe's AI Bet: Billions Spent, Stock Plummets

Adobe's AI Bet: Billions Spent, Stock Plummets

4 Feb

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Summary

Adobe spent $1.4 billion on advertising in 2025, a significant increase.
Company stock dropped over 50% since early 2024 due to AI competition.
Marketing push highlights Adobe's own AI tools like Acrobat and Firefly.

Adobe's AI Bet: Billions Spent, Stock Plummets

Adobe Inc. significantly increased its advertising expenditures in 2025, investing $1.4 billion to promote its brand and AI offerings. This marketing blitz represents a more than 30% increase over the previous year and a larger share of revenue compared to peers like Salesforce and Meta. The company's stock has fallen more than 50% since the start of 2024, reflecting investor concerns about its competitiveness in the rapidly evolving AI landscape.

The increased ad spending, coinciding with Lara Balazs's appointment as chief marketing officer, focused on showcasing Adobe's AI capabilities. Advertisements highlighted features like AI-generated reports in Acrobat and AI-created imagery from its video generator. This push is particularly visible in San Francisco, a hub for tech competitors, with prominent advertising across the city.

Adobe faces strong competition from AI media generators and user-friendly software like Canva. While its own AI tools, such as the Firefly family, have seen billions of uses, the company must still convince creators and investors that it offers the most advanced creative solutions. Analyst buy ratings have decreased, underscoring the ongoing challenge for Adobe to demonstrate its AI-era viability.