Strategy Doubts

• Oracle reported earnings that exceeded expectations, lifting its stock price, while Adobe continues to face investor skepticism over its AI strategy and competitive positioning amid broader tech sector repricing. • Morningstar downgraded Adobe's economic moat rating alongside Salesforce and ServiceNow, citing concerns that AI disruption could erode traditional software competitive advantages and justify lower valuation multiples. • The broader earnings season reveals a disconnect between traditional valuation metrics and AI disruption risks, prompting investors to reassess which software companies can sustain pricing power and market share in an AI-transformed landscape.

• Adobe's CEO announced his resignation on March 13, 2026, causing the stock to plunge 7.6% in U.S. trading on Friday amid renewed skepticism over its AI initiatives. • The S&P 500 fell 0.6% to around 6,632, with Nasdaq Composite down 0.9%, pressured by oil prices near $100 per barrel from Iran tensions. • This leadership change revives investor concerns about Adobe's competitiveness in AI tools against rivals like OpenAI integrations in competitors.