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The AI hype has taken years to permeate markets, where it can elevate a few leaders to inevitably impressive profits at the origins of landing scores of legacy names chasing relevance. A more difficult question for investors now becomes: What companies will make generative AI be something more than a buzzword, realizing sustainable revenue growth?
As a long-time software company, Adobe (ADBE) is in the spotlight of those arguments, as Morgan Stanley lowered its rating and issued a caveat on the GenAI monetization. The bank states that the Digital Media ARR development did not proceed the way they expected it to, and they alert that the applications promoted by Adobe, publicizing their use before collecting high-priced fees, make the process pay off.
