On Friday, during the early trading hours of the U.S. stock market, Adobe's share price tumbled to its lowest level since 2019, marking a year-to-date drop of over 31%. Concerns that AI tools could undercut demand for traditional software have resulted in a nearly $1 trillion decline in the software sector's market capitalization. Citigroup has revised Adobe's target price down to $253, keeping a "hold" recommendation, and indicated that significant catalysts to drive its stock price upward in the coming year are unlikely to materialize. Software stocks are encountering fresh hurdles, with Anthropic's unveiling of the "Glasswing Project" heightening fears among conventional software and cybersecurity firms. Moreover, Adobe's long-standing CEO, Shantanu Narayen, is set to retire, even though the company's AI-driven recurring revenue has tripled and its quarterly results have surpassed Wall Street's projections.