Adobe shares fall as downbeat forecast fans worries about competition, AI efforts

A logo of Adobe Inc. is pictured at the company's office in Citywest Business Campus, Saggart, Ireland October 19, 2021. Picture taken October 19, 2021. REUTERS/ Tom Bergin/File Photo

(Reuters) -Adobe shares fell 12% on Friday as a lackluster quarterly forecast reinforced concerns about rising competition for the company's creative suite including Photoshop and disappointed investors hoping for a boost from AI integration.

The company expects about $440 million in net new annual recurring revenue for the digital media segment, which houses its cloud products for documents and creative applications. Last year, the unit had reported $470 million.