0939 ET - Analysts see logic in Adobe's move to focus on its freemium tier, given AI has led to increased competitive pressure in the creative industry. "With the rise of Canva and AI Labs, Adobe has found itself in competition/co-opetition with a wider set of providers for creative's attention than any point in recent history," Stifel analysts say in a note. But while the strategy shift has the potential to put users on a path to paid conversion, it removes some visibility, the Stifel analysts say. Mizuho analysts reiterate that point. "While we very much understand the rationale for ADBE's strategic shift, this also raises the level of uncertainty by introducing substantial changes to monetization," they say in a note. Adobe is off 8% in early trading. (kelly.cloonan@wsj.com)

(END) Dow Jones Newswires

June 12, 2026 09:39 ET (13:39 GMT)

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