Adobe Unveils New AI Features Amid Stock Dip
According to investors.com, Adobe announced significant upgrades to its Adobe Acrobat document software through new AI features. But the news was met with a decline in Adobe stock. Starting Tuesday, Acrobat users will have access to advanced generative AI features that allow for creating and editing images in PDFs using simple text prompts, thanks to Adobe’s Firefly Image 3 Model.
In addition to these enhancements, Adobe introduced new capabilities in the Acrobat AI Assistant. These improvements enable users to ask questions, gain insights, and create content across various document types, including Word, PowerPoint, and text. Enhanced meeting transcript capabilities were also unveiled, adding to the AI Assistant’s functionality.
“Adobe is the inventor and innovator of PDF and with generative AI we’re changing the game again,” said Abhigyan Modi, senior vice president of Adobe Document Cloud, in a written statement. “With the new Firefly and AI Assistant capabilities in Acrobat, anyone can transform the information in their digital documents into actionable insights and visually compelling content — quickly and easily.”
To showcase its latest features, Adobe is offering free access to all new Acrobat AI Assistant capabilities for 10 days starting Tuesday. Despite the news, Adobe stock fell 1.7% to $516.45 in morning trades.
The San Jose, California-based company seems to be attempting to position itself as a leader in generative AI through new integrations and continuous scaling of the technology throughout its product suite offerings.
But there was some positive news for the company. Late Thursday, Adobe exceeded analyst expectations for its fiscal second quarter and raised its full-year outlook, which initially sent Adobe stock surging.
The company reported adjusted earnings per share of $4.48, up 15% year-over-year, on sales of $5.31 billion, a 10% increase for the quarter ending May 31. The strong results were attributed to robust growth across its Creative Cloud, Document Cloud, and Experience Cloud.
Following the earnings report, at least eight Wall Street analysts raised their price targets or ratings for Adobe stock. CFRA Research analyst Angelo Zino noted, “Growth was most impressive in Document Cloud, as Adobe sees strong momentum from the introduction of AI Assistant and more enterprises migrate to higher-value offerings.”
Zino rates Adobe stock as a buy, with a 12-month price target of $630. “We think Adobe is better positioned than most enterprise software companies to monetize AI across its ecosystem,” he added.
Not the first company to see AI as the future, time will tell how these new features will be received by Adobe customers, and how the company will adjust to consumer demands.
Originally posted on OpenDataScience.com
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