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Adobe stock falls as Canva launches free Creative Operating System

Published 30/10/2025, 18:08
© Reuters.
ADBE
0.41%
META
-11.39%

Investing.com -- Adobe (NASDAQ:ADBE) stock declined 0.5% Thursday afternoon following Canva’s announcement of its new free Creative Operating System, potentially posing increased competition in the digital design space.

The Australian design platform unveiled what it calls its "biggest evolution" to date, combining a decade of innovation with new AI-powered tools and expanded capabilities. Canva’s new offering includes a world-first Design Model specifically trained to understand design complexities, a reimagined video editor, email design tools, and interactive forms.

Most notably for Adobe investors, Canva announced that its professional-grade Affinity design suite will now be "completely free, forever," potentially challenging Adobe’s subscription-based creative software business model. Affinity combines vector editing, image manipulation, and layout design in one application with a universal file type.

Canva has grown to 260 million monthly active users with $3.5 billion in annualized revenue and a $42 billion valuation. The company now serves 95% of Fortune 500 companies and counts major brands like LinkedIn, Snowflake, and Pinterest as enterprise customers.

The expanded Canva platform now includes Canva Grow, a marketing platform that allows teams to design, launch, and track ad campaigns across platforms like Meta. The company also introduced Canva Business, a new plan positioned between its Pro and Enterprise offerings.

While Adobe remains the industry standard for professional creative software, Canva’s growing feature set and free professional tools could appeal to both casual and professional designers looking for alternatives to Adobe’s Creative Cloud suite.

After initially dropping following the announcement, shares of Adobe bounced higher to trade roughly flat.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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