Digital media software firm Adobe on Wednesday released what it called "the industry's first commercially safe AI video generation model." ADBE stock rose on Wednesday.
The San Jose, Calif.-based company said its Adobe Firefly Video Model, now available in public beta, is the only generative AI video model that is commercially safe to use by brands and creative professionals because it respects intellectual property rights.
Firefly Video users can create videos from text prompts or images. They can specify camera angles to control shots, craft atmospheric elements and develop custom motion design elements.
Plus, Firefly Video integrates with Adobe Creative Cloud editing and workflow tools.
Firefly Video competes with generative AI video models such as Sora from OpenAI and Runway from Runway AI.
Firefly Video is the latest offering in Adobe's Firefly family of creative generative AI models, which already has been used to generate over 18 billion images and other assets globally, Adobe said.
Leading brands and enterprises including Gatorade, IBM, Mattel and Stagwell have chosen Firefly to produce content, Adobe said.
ADBE Stock Wobbles On News
On the stock market today, Adobe stock alternated between modest gains and losses. However, it ended the regular session Wednesday up 0.9% to close at 462.76.
ADBE stock has been in a slump since the company gave disappointing 2025 guidance with its fiscal fourth-quarter earnings report in December.
Adobe has been "a frustrating stock" because of its underperformance of late, Mizuho Securities analyst Gregg Moskowitz said in a client note Wednesday.
"Having said that, we remain confident ADBE will significantly monetize its generative AI innovations going forward, and we expect solid upside to the fiscal 2025 ARR (annual recurring revenue)/revenue guidance as the year unfolds," he said.
Moskowitz rates ADBE stock as outperform with a price target of 620.
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