Adobe Inc. experienced a significant downturn, with its shares plummeting 12% in after-hours trading, following the announcement of a $25 billion share buyback and the release of a weak second-quarter revenue outlook, which led to a 10% drop after the weak outlook was disclosed. The company's stock, which had already been down 10% from its all-time highs, fell to $510 after the earnings report. This decline was attributed to soft guidance and concerns over the competition in generative AI, despite Adobe beating top and bottom line expectations. The market's reaction underscores the growing worries about Adobe's ability to compete in the rapidly evolving AI landscape.