Adobe slides with eyes on new CEO

** Adobe ADBE.O shares down 1.8% at $250.25 on Thursday ahead of Q3 results after the bell, with investors looking for the new CEO's strategy amid rising AI competition

** The software maker is expected to report quarterly revenue up 12% to $6.70 bln and adjusted EPS of $6.09 vs $5.31 a year ago, per LSEG

** ADBE has beaten estimates on both top and bottom lines for at least eight straight quarters

** The report is the first under new CEO Anil Chakravarthy, who was appointed last week as the company faces threats to its dominance from AI rivals

** Long-time CEO Shantanu Narayen transitions to executive chair

** In June, ADBE raised its annual revenue forecast on strong adoption of AI tools but also announced the departure of its CFO

** Chakravarthy takes charge as Adobe faces disruption from new AI rivals threatening its dominance in design software; Narayen served as CEO for over 18 years

** ADBE shares are down 29% year to date, versus a 22% jump in the S&P 500 tech sector index .SPLRCT and a 3% fall in the S&P 500 software and services index .SPLRCIS

** Since the new CEO announcement, ADBE shares are down about 12% versus about a 3% fall in the tech index and about a 4% dip in the software and services index

** Of the 39 analysts that cover ADBE, the breakdown of recommendations is 13 "strong buy" or "buy," 21 "hold" and 5 "sell" ratings

** Median price target of $260 is up from $250 a month ago

** ADBE shares are on track to close below the 50-day moving average for the first time since July 24

** Stock recently traded at a forward P/E of 9, a steep discount to its five-year average of 24