Adobe and Microsoft faced the same U.S. immigration restriction on Thursday, but Wall Street treated their shares very differently. Adobe stock (NASDAQ: ADBE) jumped 3.56% to $241.05, while Microsoft (NASDAQ: MSFT) fell 1.35% to $522.61. Both companies were suspended from the Labor Department's PERM program, which handles employment-based green cards.
The split suggests investors viewed the policy shock as only one factor among many. Adobe entered the session after a prolonged valuation decline and with signs that its AI products are starting to generate revenue. Microsoft, meanwhile, was caught in a broader tech sell-off after new reporting questioned OpenAI's annualized revenue figures.
Same green-card restriction, different financial impact
The Trump administration suspended Microsoft, Adobe, and several IT-services companies from PERM, blocking new applications and pending cases. The program is a key step for many employment-based green cards, but the action does not revoke existing employees' status or cancel H-1B visas.
Ken Mahoney of Mahoney Asset Management told Reuters that "the immediate financial impact on major technology companies may be relatively limited," though he warned of longer-term consequences for innovation and competitiveness. Microsoft has greater political exposure as a major user of skilled-worker immigration programs, but the restriction itself does not automatically translate into an immediate revenue or profit hit.
Adobe's rally driven by valuation and AI progress
Adobe's 3.6% gain should not be read as investors welcoming the PERM decision. The stock had already been heavily discounted as Wall Street debated whether generative AI could weaken its creative-software franchise. That skepticism left Adobe far below its 52-week high, creating room for dip buyers when operating data improve.
Its latest quarter offered evidence that AI monetization is gaining traction. Adobe reported record quarterly revenue of $6.76 billion, while AI-first annual recurring revenue exceeded $650 million and grew more than 150% from a year earlier. RBC Capital analyst Matthew Swanson said Adobe's AI-first and freemium products were showing traction, with positive monetization trends emerging among converted users. RBC maintained an Outperform rating and a $315 price target.
Adobe also announced an AI-focused partnership with Heathrow Airport on Thursday. The combination suggests the rally was driven more by valuation, improving AI execution, and company-specific news than by the immigration announcement.
Microsoft: OpenAI revenue concerns weigh
Microsoft faced the same PERM restriction, but it was also exposed to a second shock. The Financial Times reported that OpenAI had told investors its annualized revenue was approaching $50 billion in late September, roughly $20 billion below the $70 billion figure reported by media outlets in September.
The gap did not represent a sudden collapse in OpenAI's business. The discrepancy stemmed from attempts to compare OpenAI with Anthropic, which counts some cloud-partner sales differently. Even so, investors reacted quickly. Nvidia, Broadcom, Oracle, and other AI-linked stocks fell as the Nasdaq dropped 1.25%.
DA Davidson analyst Gil Luria told MarketWatch that the sell-off reflected "undue concern," arguing that accounting differences rather than deteriorating AI demand explained much of the apparent shortfall. That matters for Microsoft, which remains closely tied to OpenAI through Azure and its broader AI strategy.
This article is for informational purposes only and does not constitute financial advice.
