Digital media software firm Adobe on Monday announced advancements to its products powered by generative artificial intelligence, including tools for creating images, graphics and videos. Adobe stock rose on the news.
At its Adobe Max conference in Miami Beach, Fla., the company announced the general availability of Adobe GenStudio for Performance Marketing, a new application anchored in generative AI.
GenStudio for Performance Marketing is the latest enterprise application within Adobe GenStudio. The new application helps brands and agencies to accelerate the delivery of global advertising and marketing campaigns.
The overarching GenStudio product family optimizes the process of planning, creating, managing, activating and measuring content for marketing campaigns and personalized customer experiences.
On the stock market today, Adobe stock rose 2.9% to close at 509.65.
Customer Examples: Gatorade, Mattel
Adobe also announced expanded partnerships to integrate with Alphabet's Google Campaign Manager 360, Meta Platforms, Microsoft Advertising, Snap and TikTok. Brands will be able to activate campaigns instantly across platforms and make timely adjustments via direct performance insights, Adobe said.
At the Max conference, Adobe touted a collaboration with PepsiCo brand Gatorade. The collaboration allows consumers to personalize their own one-of-a-kind Gatorade Squeeze bottle through generative AI graphics using simple text prompts.
On Friday, Adobe revealed how Mattel is customizing packaging for its Barbie dolls using Adobe Firefly generative AI.
Also at Max, Adobe will extend its family of generative AI models to video with the availability of the Adobe Firefly Video Model. The video model will be available in beta in Premiere Pro with Generative Extend, and rolling out in a limited public beta at Firefly.Adobe.com with text-to-video and image-to-video, to garner initial feedback on the model.
Adobe Stock Has Favorable Setup: Analyst
Adobe stock has been a laggard this year, down nearly 15% year to date.
Piper Sandler analyst Brent Bracelin said he sees a favorable risk-reward setup for Adobe.
"Positive news flow on Adobe into year-end could help drive a narrative shift for a high-quality software laggard that is in the early innings of a new product cycle where AI could turn from a perceived headwind into a tailwind," Bracelin said in a client note Thursday.
He rates Adobe stock as overweight, or buy, with a price target of 635.
Adobe stock ranks third out of six stocks in IBD's Computer Software-Desktop industry group, according to IBD Stock Checkup. It has a middling IBD Composite Rating of 54 out of 99.
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