--- title: "Oracle vs. Adobe: One AI Software Stock Is a Buy, the Other Is Too Problematic, Says Goldman Sachs" type: "News" locale: "en" url: "https://longbridge.com/en/news/299063156.md" description: "Goldman Sachs analyst Gabriela Borges rates Oracle (ORCL) as a Buy with a $240 price target, citing strong cloud infrastructure growth and successful AI capital execution. Conversely, she maintains a Sell rating on Adobe (ADBE) with a $200 target, arguing that monetization challenges, subscription shifts, and leadership uncertainty outweigh positive user growth metrics." datetime: "2026-09-15T14:08:14.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/299063156.md) - [en](https://longbridge.com/en/news/299063156.md) - [zh-HK](https://longbridge.com/zh-HK/news/299063156.md) generator: "portal-rs" --- # Oracle vs. Adobe: One AI Software Stock Is a Buy, the Other Is Too Problematic, Says Goldman Sachs **Oracle (NYSE:ORCL)** and **Adobe (NASDAQ:ADBE)** are two software giants trying to adapt to the new AI-driven paradigm, but both face huge challenges as they invest heavily in AI while trying to protect their existing businesses and justify their valuations. Oracle is betting big on AI infrastructure and cloud, while Adobe is working to defend its creative software franchise as generative AI reshapes how users create and consume content. Both have also seen their share prices contract in 2026 as investors mull over the difficulties the two face, from the huge cost of building out AI infrastructure to the threat that AI could disrupt their core businesses. So, are these software stalwarts doomed or do these stocks offer excellent value at their currently depressed states? Following the pair’s recent earnings, Goldman Sachs analyst Gabriela Borges has been assessing their prospects and finds that only one is currently worth investors’ attention. For Oracle, Borges believes the latest quarter helped settle some of the concerns surrounding its huge AI infrastructure push. Revenue came in slightly ahead of expectations, while cloud infrastructure revenue jumped 121% year over year as new capacity came online. Oracle also delivered 850MW of capacity during the quarter and completed its planned $20 billion at-the-market share offering, removing an important funding concern. The bigger questions, however, lie beyond the current fiscal year. Borges says investors still need a clearer picture of Oracle’s capital spending requirements in fiscal 2028, how much additional funding the company will need and when it can return to positive free cash flow. For the stock to perform from here, she believes Oracle must continue adding capacity while proving that this investment is translating into backlog, revenue and ultimately gross profit. The analyst expects the company’s October investor day to provide some much-needed detail on these issues. All told, Borges expects Oracle to execute successfully. She maintained a Buy rating on the shares and raised the price target slightly from $239 to $240, implying the stock will gain 70% in the year ahead. (To watch Borges’s track record, click here) Adobe’s results also offered some encouraging signs, particularly around user growth and engagement. Borges points to more than 1 billion monthly active users, with creative freemium users surpassing 100 million. Firefly’s annual recurring revenue also grew 40% quarter-over-quarter, while AI-related ARR passed $650 million, up 150% YoY. The challenge for Adobe is turning that engagement into sustainable revenue growth. The company has deliberately prioritized expanding its free user base and attracting new customers over near-term monetization, meaning investors now need to see how effectively those users convert into paying customers. Borges also notes that the shift toward more flexible, monthly subscriptions is weighing on RPO (remaining performance obligations). On top of that, the arrival of new CEO Anil Chakravarthy following David Wadhwani’s departure adds another element of uncertainty as Adobe tries to balance AI innovation, user growth and monetization. Put that altogether and the negatives outweigh the positives for Borges. She reiterated a Sell rating, backed by a $200 price target. That figure suggests the shares will slide by 23% over the coming months. The Street also clearly distinguishes between the pair. Oracle claims a Strong Buy consensus rating, while its average price target of $251.52 implies shares will gain 78% in the year ahead. Adobe only receives a Hold consensus rating. Its $272.87 average target suggests shares have 12-month upside of 6%. 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