AI Fears Send ADBE, CRM, TTD Stocks Plummeting

Adobe (ADBE), Salesforce (CRM), and The Trade Desk (TTD) stocks plummeted to new lows on Wednesday, sparking concerns about the impact of artificial intelligence on traditional software providers.

The declines, which pushed all three stocks to fresh 52-week lows, were driven by investor skepticism about whether AI will help or hurt companies like Adobe and Salesforce, which rely heavily on subscription-based software revenue.

Adobe shares fell to an eight-year low of $195.64, while Salesforce shares dropped to a three-year low of $154.23. The Trade Desk shares plummeted to a six-year low of $18.15, capping a nearly 74% decline over the past year.

Investors are worried that AI could reduce demand for Adobe's key products like Photoshop and Premiere Pro, as well as Salesforce's traditional per-user software licenses. The company has been exploring alternative pricing models tied to usage and consumption rather than employee counts, but investors remain focused on whether those new revenue streams can offset potential pressure on traditional licensing arrangements.

TTD's advertising tech business is also under pressure, with the company seeing major leadership changes over the past year, including the exits of marketing head Ian Colley and at least three chief financial officers. Fiscal Q1 revenue expansion moderated into the low double digits, while the company’s Q2 revenue outlook fell short of analyst expectations.