Creative software company Adobe (ADBE) has announced a new $25 billion U.S. stock buyback program that runs through April 30, 2030.
The company behind Photoshop and Illustrator is undertaking the share repurchases as it tries to reassure investors who are worried about artificial intelligence (A.I.) disrupting its business.
The rise of creative autonomous tools is widely viewed as a threat to the suite of creative software products made by Adobe. As a result, ADBE stock is down 26% this year.
“Our new $25 billion share repurchase authorization is a direct expression of confidence in our robust cash flow and the long-term value we are delivering to investors,” said Adobe in a news release.
The latest threat to Adobe’s business model emerged last week, when A.I. startup firm Anthropic unveiled Claude Design, which ?allows ?users to create presentations using a chatbot.
Adobe is doing its best to embrace A.I. and embed the technology into its own software applications.
On April 20, the company launched new A.I. products that help clients automate and personalize digital ?marketing functions.
Still, trouble remains at Adobe, whose longtime CEO Shantanu Narayen stepped down in March of this year, ?sparking concerns about the future direction of the company.
ADBE stock is currently trading at $247.18 U.S., having declined 52% over the past five years.
