Adobe’s lighter-than-expected guidance may reflect the impact on its creative business from new competition and artificial intelligence, according to Melius Research analysts Ben Reitzes and Jack Adair in a research note. They say they’ve felt bewildered watching Adobe’s stock march higher almost every day for the past three months despite some concerning trends popping up in creative, but reality now seems to be sinking in for investors in light of the soft revenue outlook for F4Q. Adobe is sliding 8% to $539.84 in premarket trading. Still, the analysts say Adobe’s smaller document cloud business is continuously improving and overall 2024 is above guidance, while 3Q net new annually recurring revenue was above normal.