Adobe (ADBE) Boosts Generative AI Offerings With Latest Move – May 23, 2024
To bolster generative AI capabilities, Adobe (ADBE – Free Report) unveiled Generative Remove in Adobe Lightroom.
This Firefly-backed powerful tool helps remove unwanted objects from any photo in a single click in a non-destructive manner.
The tool seamlessly matches the removed area with pixel-perfect generations. It also helps edit complicated backgrounds and surroundings, such as removing stains from a patterned shirt, wrinkles from a tablecloth in food photography and unwanted reflections in water.
Generative Remove integrates Firefly capabilities into everyday photo editing workflows across Lightroom mobile, web and desktop surfaces.
Currently, the tool is available as an early access feature across the Lightroom ecosystem.
With Generative Remove, Adobe is expected to gain strong traction among photographers of various categories as it is capable of empowering their retouching capabilities, and removing distractions from family and travel photos.
Expanding Generative AI-Backed Offering
The latest move bodes well for Adobe’s growing efforts to strengthen its generative AI capabilities, which are presently acting as a key growth catalyst for the company.
ADBE recently launched Adobe Express for Enterprise, which is powered by Adobe Firefly Image Model 3. Adobe Express for Enterprise features Brand Controls, Bulk Create, Generate and Firefly Custom Models, enabling businesses to speed up marketing content creation and extend on-brand production to various users.
Adobe’s launch of the Firefly Image 2 Model, Firefly Vector Model and Firefly Design Model to mark a significant advancement in its creative generative AI model family, enhancing creative control, image quality and illustrator capabilities, remains noteworthy.
The company also launched Photoshop’s web version, which is available via Firefly-powered AI tools, generative expand and generative fill. The editing tool enables file collaboration through sharing links, even without subscriptions, and provides a web version with desktop tools like the contextual taskbar for workflow suggestions.
The above-mentioned efforts will aid Adobe in capitalizing on growth opportunities in the global generative AI market. Per a Grand View Research report, the generative AI market size is expected to witness a CAGR of 36.5% between 2024 and 2030.
Solidifying prospects in the promising generative AI market will, in turn, aid its overall financial performance.
The Zacks Consensus Estimate for fiscal 2024 total revenues is pegged at $21.42 billion, indicating year-over-year growth of 10.4%.
The same for fiscal 2024 earnings is pegged at $17.96 per share, implying year-over-year growth of 11.8%.
However, the ongoing tensions between Russia and Ukraine remain major headwinds. High acquisition expenses are concerning.
Adobe has lost 18.9% year to date against the Zacks Computer & Technology sector’s growth of 16.8%.
Zacks Rank & Stocks to Consider
Currently, Adobe carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the broader technology sector are Dell Technologies (DELL – Free Report) , CrowdStrike (CRWD – Free Report) and Intuit (INTU – Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Shares of Dell Technologies have gained 8.3% in the year-to-date period. The long-term earnings growth rate for DELL is pegged at 9.50%.
Shares of CrowdStrike have gained 32.8% in the year-to-date period. The long-term earnings growth rate for CRWD is projected at 22.31%.
Shares of Intuit have gained 4.8% in the year-to-date period. The long-term earnings growth rate for INTU is pegged at 14.57%.
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