Investing.com -- BTIG initiated coverage of both Adobe and Figma with Neutral ratings in notes on Monday, highlighting strong industry positions but lingering questions about the durability of AI-driven growth.

Analyst Nick Altmann said Adobe “has pioneered key categories in content creation, digital marketing, and document management,” noting its FY25 revenue of about $24 billion and “a margin profile few software companies may ever be able to match.”

But despite the company’s long-standing dominance, BTIG said AI is “fueling concerns about Adobe’s longer-term revenue and margin trajectory.”

Adobe shares have fallen roughly 55% over the past five years, even though “growth has remained resilient” and margins have held steady.

The concern, according to BTIG, is the impact of generative AI on Creative Cloud, which drives about 60% of revenue. While BTIG is “encouraged by Adobe’s AI strategy” and praised its Firefly model and open platform, it warned that “AI threats are real, but very nuanced” as pricing power and competition come into question.

On Figma, BTIG said the company “pioneered the way in which UI/UX design is conducted today,” enabling more than $1 billion in FY25 run-rate revenue and 41% growth.

The firm said early usage data for its AI-powered “Make” features leaves it “constructive on potential AI monetization in the NT,” pointing to surging weekly active usage and partnerships with frontier labs.

Still, BTIG said monetization levels remain “ambiguous,” noting it is “difficult to decipher the degree to which monetization can happen in the NT.”