Adobe's stock has dropped nearly 50% in one year

Looking back from time to time, I see that Adobe is "not doing well at all" as its stock is still plunging. Last June, Adobe's stock was at 380.12 USD/share, but now it is only 194.90 USD/share, down 48.73%. There are many reasons why Adobe's stock price has dropped, but the most notable is generative AI. Investors fear that advanced AI models could replace or devalue core software like Creative Cloud, making it easier for competitors to provide solutions at cheaper prices. Despite the stock price drop, Adobe reported Q2 revenue increased 13% to $6.62 billion and it added 190 million new users. This is a similar strategy to Canva's freemium, Adobe intentionally reduced short-term revenue by $500 million to eliminate barriers and expand free users, aiming for long-term revenue. However, losing short-term revenue will not make investors happy, only Adobe is "its gain". Finally, there was instability in Adobe's leadership when chief financial officer (CFO) Dan Durn suddenly moved to work for semiconductor company Marvell Technology not long after CEO Shantanu Narayen announced he would resign when a replacement was found. These fluctuations make investors worried, leading to sell-offs.