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Investors Business Daily
Technology
PATRICK SEITZ

Adobe Touts Acrobat AI Assistant For Contracts

Adobe continues to release new generative artificial intelligence features for its software products at a rapid pace. But Adobe stock is still in the doghouse after giving a disappointing 2025 outlook in December.

On Tuesday, Adobe announced new intelligent contract capabilities in Acrobat AI Assistant. The capabilities are designed to simplify working with contracts, Adobe said in a news release. They can help customers understand complex terms and spot differences between multiple agreements.

Acrobat AI Assistant can generate contract summaries and surface key facts. It also can provide straightforward explanations of legalese.

"Customers open billions of contracts in Adobe Acrobat each month and AI can be a game-changer in helping simplify their experience," Abhigyan Modi, senior vice president of Adobe Document Cloud, said in a statement.

Last month, Adobe introduced new generative AI for content creators. It added a "Bulk Create" feature within its Firefly generative AI platform, allowing brands to rapidly generate large volumes of customized content like images and designs at scale.

Adobe Stock Has Subpar Composite Rating

On Dec. 11, Adobe handily beat Wall Street's targets for its fiscal fourth quarter. But its sales and earnings guidance for 2025 was below views. Adobe stock plunged nearly 14% in the next trading session. It continued to slide in the weeks that followed bottoming at 403.75 on Jan. 13.

Investors have been impatient for Adobe to monetize its investments in AI tools for content creation and digital marketing.

On the stock market today, Adobe stock rose 0.4% to close at 440.23.

Adobe stock ranks fourth out of six stocks in IBD's Computer Software-Desktop industry group, according to IBD Stock Checkup. It has a subpar IBD Composite Rating of 49 out of 99.

Follow Patrick Seitz on X, formerly Twitter, at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.

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