Adobe (NASDAQ:ADBE) just got hammereddown over 10% at 10.18am todayeven after delivering an earnings beat. That's the kind of market we're in right now. The creative software giant reported $5.08 per share in adjusted earnings on $5.71 billion in revenue, topping estimates. But investors weren't impressed. The company stuck to its previous full-year guidance, which landed just below Wall Street's expectations, triggering at least 15 analyst price target cuts. Deutsche Bank even downgraded the stock to Hold. The message? Solid results aren't enough when expectations are sky-high.

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It's not just Adobe feeling the heat. The market is grappling with Trump's trade policies, renewed inflation fears, and the rise of DeepSeek's low-cost AI models shaking up the AI-driven rally. Adobe is leaning hard into AI-first products, pulling in $125 million in annualized recurring revenue. CFO Dan Durn is optimistic, saying they plan to double that figure over the next year. But investors want to see proof. The question remains: Can Adobe successfully monetize AI fast enough before macro headwinds slow enterprise and consumer spending?

With the S&P 500 sliding 7.5% in the past month, Adobe's stock reaction is a reality check. The AI trade isn't a guaranteed rocket ship, and the broader market is showing cracks. Adobe's results highlight what could be ahead for tech stocksgood earnings won't cut it if companies can't deliver stronger future growth signals.