On July 21, Adobe fell 4.57% in regular trading, trading at $229.56/share, with turnover of $216 million. The decline was primarily driven by a wave of bearish analyst reports and broad-based selling pressure across the SaaS sector.

Morgan Stanley downgraded Adobe from Equal-weight to Underweight, slashing its price target from $365 to $240. The firm cited execution risks from multiple ongoing transitions, the disruptive threat of generative AI to Adobe's Creative Cloud business, and the likelihood that profit margins have already peaked. This marks the third major bank to explicitly turn bearish on the stock in recent weeks. BNP Paribas previously warned that cloud giants are leveraging AI-native tools to dismantle Adobe's full-workflow moat, while Bank of America assigned an Underperform rating with a $190 target, arguing AI continues to erode growth momentum with limited near-term acceleration potential.

Meanwhile, the broader SaaS sector experienced collective weakness, with ServiceNow falling over 4% and Salesforce declining nearly 3%, amplifying downward pressure on Adobe through sector-wide selling.

(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)