Yahoo Finance Adobe (ADBE) Boosts Generative AI Offerings With AI Assistant
Adobe ADBE is benefiting from strengthening generative AI capabilities. The solid momentum of its family of creative, generative AI models, Firefly, is a major positive.
In order to deliver enhanced experiences to various enterprises and customers, the company is constantly making efforts to bolster its generative AI-backed offerings.
The latest move of making Adobe Experience Platform (“AEP”) AI Assistant generally available is a testament to the same.
AEP AI Assistant is capable of answering technical questions, automating tasks, simulating outcomes, and generating new audiences seamlessly. It enables enterprises to boost their productivity through its conversational interface, which provides a deeper understanding of data and an ability to streamline workflows.
It also helps in generating entire marketing assets, such as emails and web pages with copy, design and images via Adobe Firefly.
The underlined AI assistant is integrated into Adobe Experience Cloud applications, such as Real-Time Customer Data Platform, Adobe Journey Optimizer and Customer Journey Analytics.
Hence, the latest move is expected to contribute to the Digital Experience segment performance and Experience Cloud subscriptions in the near term.
In first-quarter fiscal 2024, the segment generated revenues of $1.29 billion, up 10% on a year-over-year basis. Experience Cloud subscription revenues were $1.16 billion, rising 12% from the year-ago quarter.
Strengthening the Digital Experience segment will, in turn, aid Adobe’s overall financial performance.
The Zacks Consensus Estimate for fiscal 2024 total revenues is pegged at $21.42 billion, indicating year-over-year growth of 10.4%. The same for fiscal 2024 earnings is pegged at $17.96 per share, implying a year-over-year rise of 11.8%.
Adobe Inc. Price and Consensus
Adobe Inc. price-consensus-chart | Adobe Inc. Quote
Growing Generative AI Solutions Aid Prospects
Per a Grand View Research report, the generative AI market size is expected to witness a CAGR of 36.5% between 2024 and 2030.
The Zacks Rank #3 (Hold) company is well-poised to capitalize on this growth prospect on the back of its strengthening generative AI-powered portfolio of solutions. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Adobe’s unveiling of the Firefly Image 2 Model, Firefly Vector Model and Firefly Design Model to mark a significant advancement in its creative generative AI model family, enhancing creative control, image quality and illustrator capabilities, remains noteworthy.
The company recently unveiled Generative Remove in Adobe Lightroom, which is a powerful Firefly-backed tool that helps remove unwanted objects from any photo in a single click in a non-destructive manner.
The launch of Adobe Express for Enterprise, which is powered by Firefly Image Model 3, is a positive. It offers features, namely Brand Controls, Bulk Create, Generate and Firefly Custom Models.
The company also launched Photoshop’s web version, which is available via Firefly-powered AI tools, generative expand and generative fill. The editing tool enables file collaboration through sharing links, even without subscriptions, and provides a web version with desktop tools like the contextual taskbar for workflow suggestions.
Intensifying Competition: A Risk
Adobe has lost 23.2% year to date against the Zacks Computer & Technology sector’s growth of 16.8%. In the same time frame, the company has underperformed Amazon AMZN, Alphabet GOOGL and Meta Platforms META, from which it faces stiff competition in the generative AI market.
Amazon, which has gained 21.8% year to date, is benefiting significantly from the solid adoption of Amazon Bedrock, which has provided it with a breakthrough in the generative AI space. Amazon Bedrock offers seamless access to high-performing foundation models from AI companies through an API.
Growing momentum in the Amazon Titan model is a plus. The addition of Meta’s Llama 2 to Amazon Bedrock as a new model remains noteworthy.
Alphabet’s Google is capitalizing on the increasing demand for large language models (LLMs) with its most powerful AI model, Gemini. Solid momentum in Google’s Vertex AI, which enables developers to train, tune, augment and deploy applications using generative AI models, is another positive.
Alphabet, which has rallied 26.6% year to date, is also gaining strong momentum across its second generation of image generator model, Imagen 2, which offers an improved image quality to help organizations create brand-specific images with enterprise-grade reliability and governance, ensuring customer satisfaction.
Meanwhile, Meta Platforms, which has returned 39.6% year to date, recently introduced generative AI features to assist businesses in creating and editing new ad content, making the process quicker and more efficient.
These features include image and text generation capabilities, image variation, and the ability to create alternate iterations based on original creative, helping businesses reach their target audiences more effectively.
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