Adobe Inc ( ADBE ) shares are dropping on Wednesday after the company announced it reached a definitive agreement to purchase Semrush Holdings Inc ( SEMR ) , a brand visibility platform.

ADBE is at important technical levels. See what the experts say here.

What Happened: Adobe will purchase Semrush ( SEMR ), which focuses on search engine optimization (SEO) and generative engine optimization (GEO), for $12.00 per share. The all-cash deal represents a total equity value of approximately $1.9 billion.

As people rely more and more on language models like ChatGPT and Google’s Gemini for information, recommendations and purchase decisions, the deal shines a light on the increasing importance of brand visibility.

Anil Chakravarthy, president of Adobe’s Digital Experience Business, stated, “Brand visibility is being reshaped by generative AI, and brands that don’t embrace this new opportunity risk losing relevance and revenue. With Semrush ( SEMR ), we’re unlocking GEO for marketers as a new growth channel alongside their SEO, driving more visibility, customer engagement and conversions across the ecosystem.”

Both companies’ boards of directors have approved the deal, which is anticipated to close in the first half of 2026, pending regulatory approval and fulfillment of customary closing conditions.

ADBE Price Action: Adobe shares were down 1.73% at $318.84 at the time of publication on Wednesday, according to Benzinga Pro. The stock is trading at new 52-week lows, reflecting a challenging year with a year-to-date performance decline of approximately 28%. Adobe's sharp drop has made it a mid-sized tech company, with a market value of $135.82 billion — much smaller than giants like Google and Microsoft.

Adobe shares are trading about 7.7% below their 50-day moving average of $345.34 and 15.5% below the 200-day average of $377.29. The Relative Strength Index (RSI) is at 36.71, which suggests the stock isn't strongly overbought or oversold — a neutral signal that could point to either a rebound or more downside, depending on market sentiment. With the stock at 52-week lows with no clear support levels in place, the 50-day moving average becomes an important level to watch.

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