Adobe and Figma have both received cautious endorsement from BTIG, with the underlying hesitation stemming from how artificial intelligence is poised to fundamentally transform the industry.

On the surface, Adobe remains robust. It is the undisputed leader in creative software, with annual revenue of approximately $24 billion and profit margins that are the envy of most companies. However, the current concern is not about Adobe's present standing, but rather what will happen next as AI begins to reshape content creation. BTIG acknowledges Adobe's strategic positioning in AI and even considers its valuation reasonable, but is not yet prepared to make a full-throated endorsement.

Figma finds itself in a similar situation, albeit at an earlier stage of development. The market is enthusiastic about its AI tools, particularly as usage is growing rapidly. Yet, it remains unclear how much of this demand will be sustained once users begin paying for these features. This is precisely the area BTIG wishes to observe more closely.