Adobe

Adobe’s latest announcement could be just what investors eager to see companies start to make money from artificial intelligence have been waiting for. The software company said on Wednesday that its Firefly Video Model will now be available in public beta. Subscribers can use it to create videos straight from text entries, turn existing photos into videos, and change the camera angles of those clips using a variety of prompts. The video creation tool will be available at prices within two tiers: Firefly Standard and Firefly Pro. Firefly Standard starts at $9.99 a month while Pro starts at $29.99. “As we introduce Firefly capabilities, especially with the introduction of video, it gives us an opportunity to provide these new tiers that are additive that are going to bring a lot of value to our customers,” David Wadhwani, president of Adobe’s digital media business, said in an interview with Barron’s. Adobe […]

Adobe (ADBE) said Wednesday that it has launched its new Firefly app, which allows clients to generate videos and images using artificial intelligence technology. The company said it has introduced two offerings: the Firefly Standard plan, which starts at $9.99 and provides users with 2,000 video/audio credits per month and up to 20 five-second 1080p video generations, and the Firefly Pro plan, which begins at $29.99 and provides users with 7,000 video/audio credits per month, up to 70 five-second 1080p video generations. The company said a new Firefly Premium plan will be available soon for high-volume clients.

Software stocks finished 2024 with a bang, and a Deutsche Bank analyst sees that trend continuing for the sector, minus Adobe. Stocks including Salesforce, ServiceNow, and Palantir Technologies saw strong returns last year as investors bought up shares of software companies with exposure to generative artificial intelligence. Enterprises are spending big to improve productivity, giving Wall Street optimism on the space. The Technology Select Sector SPDR ETF rose 20.80% in 2024. Deutsche Bank’s Brad Zelnick believes this trend will continue in the new year. “Our conversations with CIOs, industry constituents, and analysis of third-party data indicate the spending environment for software will improve in 2025 vs 2024,” Zelnick wrote in a research note Wednesday. Zelnick added that monetization of gen-AI is still in its early days, but an “AI halo effect” will help drive revenue dollars. Essentially, the analyst believes excitement over AI software could help bring in new customers,

Adobe could lose ground as rivals like OpenAI establish themselves in the market for creative artificial intelligence, UBS analysts said on Friday. Analysts led by Karl Keirstead lowered their target for the stock price to $475 from $525 while maintaining a Neutral rating on the shares. Shares of Adobe slipped 3%, putting the stock on track for its lowest close since June 7, 2023, according to Dow Jones Market Data. As of Friday morning, the stock was the worst performer in the S&P 500 and Nasdaq 100. Adobe has increasingly embraced AI, rolling out its Firefly suite and incorporating generative AI tools into its flagship photo-editing software. However, UBS said early leaders like OpenAI, Runway, and Midjourney may outpace Adobe in the battle for a market the bank described as “fiercely competitive.” The analysts used Coca-Cola’s 2024 holiday commercial, which was created using AI, as a case study for the

Adobe (NASDAQ:ADBE) reported its fourth-quarter FY2024 results after market hours on Wednesday, and its FY2025 guidance fell less than 9% in after-hours trading. Although the stock price has plummeted, it provides us with a rare buying opportunity. According to the financial report data, the company’s Q4 revenue was $5.61 billion, a year-on-year increase of 11%, better than the market expectation of $5.54 billion; Earnings per share, excluding certain items, were $4.81, also better than the consensus of $4.67. Adobe’s annual digital media recurring revenue (ARR) for the quarter was $17.3 billion, slightly above analysts’ average estimates. In the fourth quarter, revenue in the digital media segment, which includes Adobe’s flagship creative and document processing software, increased 12% year-over-year to $4.15 billion. Segment revenue, which includes marketing and analytics software, increased 10% year-over-year to $1.4 billion. However, Adobe issued disappointing revenue guidance for fiscal year 2025, which it expects revenue to

Adobe Inc. (NASDAQ:ADBE) Adobe MAX 2024 Investor Q&A with Company Leadership October 14, 2024 5:00 PM ET Company Participants Jonathan Vaas – VP, IR Shantanu Narayen – Chair & CEO David Wadhwani – President, Digital Media Business Anil Chakravarthy – President, Digital Experience Business Daniel Durn – EVP & CFO Scott Belsky – Chief Strategy Officer & EVP, Design & Emerging Products Steve Day – Head of IR Conference Call Participants Jay Vleeschhouwer – Griffin Securities Michael Turrin – Wells Fargo Saket Kalia – Barclays Karl Keirstead – UBS Mark Murphy – JPMorgan Gregg Moskowitz – Mizuho Securities Jackson Ader – KeyBanc Capital Markets Stefan Slowinski – BNP Paribas Jonathan Vaas Welcome, everyone to Adobe MAX 2024 Investor Update. It’s great to see so many friendly faces here, from the investment community, some of our Board members in the back. Welcome. Thanks for coming. Just curious, show of hands, how

Shares fell after earnings despite signs that the company is monetizing its artificial-intelligence offerings. By Jacob Sonenshine Adobe’s earnings report painted a pretty picture of its ability to turn artificial intelligence into paying customers. But the reaction to its disappointing guidance was anything but pretty. That has created a buying opportunity in its stock. There was a lot to like about Adobe’s third-quarter results, with both earnings and sales easily topping estimates. The market, though, focused on management’s somewhat disappointing outlook, which included a forecast for “net new annual recurring revenue” — representing the sales Adobe expects to bring in from new customers or from increasing monthly subscription payments — to come in at $550 million in the fourth quarter, up 9% quarter over quarter. The fourth quarter usually sees double-digit growth, and the stock tumbled 13% after the report. It has since settled around $510. The market reaction was

By Jacob Sonenshine Adobe’s earnings report painted a pretty picture of its ability to turn artificial intelligence into paying customers. But the reaction to its disappointing guidance was anything but pretty. That has created a buying opportunity in its stock. There was a lot to like about Adobe’s third-quarter results, with both earnings and sales easily topping estimates. The market, though, focused on management’s somewhat disappointing outlook, which included a forecast for “net new annual recurring revenue” — representing the sales Adobe expects to bring in from new customers or from increasing monthly subscription payments — to come in at $550 million in the fourth quarter, up 9% quarter over quarter. The fourth quarter usually sees double-digit growth, and the stock tumbled 13% after the report. It has since settled around $510. The market reaction was understandable, if dubious. The lower-than-expected guidance could be a sign that competition from other

Adobe’s lighter-than-expected guidance may reflect the impact on its creative business from new competition and artificial intelligence, according to Melius Research analysts Ben Reitzes and Jack Adair in a research note. They say they’ve felt bewildered watching Adobe’s stock march higher almost every day for the past three months despite some concerning trends popping up in creative, but reality now seems to be sinking in for investors in light of the soft revenue outlook for F4Q. Adobe is sliding 8% to $539.84 in premarket trading. Still, the analysts say Adobe’s smaller document cloud business is continuously improving and overall 2024 is above guidance, while 3Q net new annually recurring revenue was above normal.

Adobe (ADBE) is expected to post solid fiscal Q2 results on June 13, but focus will also be on the company’s fiscal H2 guidance, RBC Capital Markets said in a note sent Wednesday. The software company has issued a lower-than-expected guidance for Q2 revenue of $5.25 billion to $5.30 billion, likely creating a “more attractive setup,” the investment bank said. “Outside of headline results, we expect the focus will be on guidance and particularly the drivers to H2 estimates including the monetary GenAI benefits from document cloud as well as increased color on the timing of potential consumption revenue,” it said. Generative artificial intelligence is seen as both a near- and long-term benefit to the company’s creative and experience businesses, and a potential catalyst to 2024 revenue growth, it said. The pricing headwinds should reach peak in Q3, the firm said, and become tailwind in the last fiscal quarter, “while

By Jon Swartz Adobe’s approach highlights the need for AI companies to think deeply about content moderation and protecting their brands Adobe Inc. is putting a creative spin on generative AI with apps and a partnership to animate business productivity. At the desktop-publishing pioneer’s annual conference in Las Vegas on Tuesday, Adobe (ADBE) announced a new AI-powered ad-creation platform, called GenStudio, for advertising and marketing campaigns, alongside updates to Adobe’s Firefly generative-AI model, which debuted a year ago. Firefly is what’s known as co-pilot technology, which leverages the company’s software tools to create original content. Additionally, Adobe and Microsoft Corp. (MSFT) detailed a technology partnership to help marketers overcome application and data silos and more efficiently manage everyday workflows. “If 2023 was about just being in awe of everything that’s happening and having fun with AI, 2024 is the beginning of leveraging AI to have real productivity gains,” David Wadhwani,