Goldman Sachs Adjusts Price Target on Adobe to $200 From $190, Keeps Sell Rating

ServiceNow (NOW) rose 5% to $139.62, Adobe (ADBE) gained 4% to $261.90, and Salesforce (CRM) increased 3% to $254.82. The gains followed a weekend essay by Anthropic CEO Dario Amodei, which sparked a rotation into enterprise software. Analysts raised ServiceNow's price targets to $155 and $170, citing AI products and growth. The iShares Expanded Tech-Software Sector ETF (IGV) climbed 2%, while the Invesco QQQ Trust (QQQ) dropped 2%.

AI stocks fell globally after industry leaders called for a slowdown due to safety concerns. Nvidia dropped 3.5%, while SpaceX and Softbank also declined. Oil prices rose, pushing the 10-year Treasury yield to 5%. The S&P 500 and Nasdaq fell 0.6% and 0.9%, respectively. Some software and oil stocks gained.

Wall Street indexes fell as AI stocks declined following safety concerns from top executives. Nvidia dropped 3.2%, while Amazon lost 1%. Chipmakers like Intel, AMD, and Marvell also fell. The Nasdaq Composite lost 1.02%. Defensive sectors like healthcare and consumer staples rose. Traders expect a Fed rate hike.

GameStop CEO Ryan Cohen bought 1M shares, spending $20.38M. Apple launched a $1,999 tablet smartphone. Adobe reported strong revenue but slower growth metrics, leading JPMorgan to raise its price target to $340.

Adobe (ADBE) stock rose 2.2% in pre-market trading, bucking broader tech weakness. The company reported record Q3 2026 revenue, beat earnings estimates, and raised full-year guidance. Analysts are divided, with some citing compelling valuation and AI-driven growth, while others remain cautious. Total annualized recurring revenue reached $27.5 billion, up 11% YoY.

Adobe reported fiscal Q3 2026 revenue of $6.76B, up 13% YoY, and raised full-year targets. Total annualized recurring revenue (ARR) reached $27.50B, with subscriptions making up 97% of revenue. The stock trades at ~$252, roughly a third below its 52-week high, with a forward P/E of ~9.