While investors fret about whether generative AI will lead to significant revenue growth for software companies, Adobe is showing how its customers are using the technology. Meanwhile, Adobe stock is near a buy point.
The San Jose, Calif.-based maker of creative software on Wednesday noted how Studio Rx, a firm owned by healthcare marketing agency IPG Health, used Adobe Firefly generative AI tools to create an advertising campaign. IPG Health is a unit of Interpublic Group.
Studio Rx accelerated production of its ad and marketing campaign by using Adobe Firefly and Custom Models. Parent company Interpublic has adopted the Adobe generative artificial intelligence products and made them available to agencies across its global network for client work and internal marketing campaigns.
With Adobe's new AI tools, Studio Rx accomplished in weeks what would have traditionally taken months to plan and execute, Adobe said.
On the stock market today, Adobe stock rose 2.4% to close at 551.65.
Adobe Stock In Cup-With-Handle Base
Studio Rx used Adobe's generative AI tools to create a family of whimsical characters called the "Rxies."
The Adobe products transformed the studio's hand-drawn illustrations into digital art for its campaign.
"What made it really special was how Firefly allowed us to retain the personality and style of our artist's work in the finished images, a critical aspect of how we wanted to portray our brand," Matt Hall, executive creative director at Studio Rx, said in a news release.
In a client note on Tuesday, BofA Securities analyst Savita Subramanian called out Adobe and ServiceNow as two software companies that have been able to monetize AI.
"As AI transitions from 'tell me' to 'show me', companies clearly monetizing AI are likely to lead from here," she said. The market has been in the AI "tell me" phase over the last 12 months, she said.
Adobe stock has formed a cup-with-handle base with a buy point of 580.55, according to IBD MarketSurge charts.
Further, Adobe stock is on the IBD Tech Leaders list.
Adobe has an IBD Composite Rating of 70 out of 99, according to IBD Stock Checkup. IBD's Composite Rating is a blend of key fundamental and technical metrics to help investors gauge a stock's strengths. The best growth stocks have a Composite Rating of 90 or better.
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