More about Adobe
Fresh off its Generative Fill Tool that created plenty of buzz, Adobe has previewed a new generative artificial intelligence (AI) tool.
Dubbed Project Gingerbread, the AI image generator tool can place and size 3D models into scenes to make composites that can be tailored into realistic-looking photos.
As noted by Creative Bloq, Gingerbread is still a work-in-progress but it seemingly allows the user to adjust the angle and perspective of an image generated via a text prompt.
IBM and Adobe Expand Partnership With Generative AI Focus
BY PYMNTS | JUNE 19, 2023
IBM and Adobe are expanding their partnership to help brands create content with artificial intelligence (AI).
The collaboration, announced Monday (June 19), will see IBM Consulting debut a portfolio of Adobe consulting services to help customers “navigate the complex generative AI landscape, bringing together innovation, technology and design to digitally reinvent customer interactions,” IBM said in a news release.
According to the release, Adobe’s enterprise clients will gain access to IBM Consulting experts, who can help them implement generative AI models for the design and creative process.
“We’re seeing incredible momentum in AI adoption as more brands turn to generative AI to create seamless and highly personalized customer experiences to drive growth and improve productivity,” said Matt Candy, global managing partner, IBM iX Customer & Experience Transformation, IBM Consulting.
“By expanding our strategic partnership with Adobe, we can help marketers more effectively design AI-powered experiences while establishing appropriate guardrails, so the AI is built on trust and transparency principles to promote brand consistency and integrity.”
The announcement comes as more and more companies add generative AI functions into their offerings, such as last week’s debut of Meta Platforms’ generative AI model that performs speech-generation tasks such as audio editing, sampling and styling.
As PYMNTS noted recently, generative AI is bringing brands’ customer service to its next horizon, with technology that can detect emotion, offer advice and complete entire transactions.
Already, more than 60% of consumers say that voice assistants will become as smart and reliable as human assistants, while 41% project that will happen within five years, according to the PYMNTS report “How Consumers Want to Live In the Voice Economy.”
Last month saw reports that IBM was freezing or slowing hiring for roughly 26,000 back-office roles, positions that could be handled by AI.
“I could easily see 30% of that getting replaced by AI and automation over a five-year period,” CEO Arvind Krishna said at the time, though he later clarified this doesn’t necessarily mean the company’s total employment would decrease.
“That gives the ability to plow a lot more investment into value-creating activities,” said Krishna. “We hired more people than were let go because we’re hiring into areas where there is a lot more demand from our clients.”
ADBE The PPS is above all its moving averages- it has broken out and is in a mark-up phase.
Viewing the Weekly Chart vs the Daily Chart evidences all the headroom remaining.
In this a bullish market and ADBE being real AI, I think we will see considerably more upside.
I won't get into what it'll do Tuesday etc. I'm simply saying I am convinced direction is up.
Adobe earnings help justify AI-fueled surge, but will the stock now 'take a breather'?
7:56 am ET June 16, 2023 (MarketWatch)
By Emily Bary
Analysts cheer AI opportunities but remain divided on upside potential after a sizable recent run up
Adobe Inc. shares had seen a 42% monthly rally in the lead up to its earnings as Wall Street deemed the company an attractive artificial-intelligence play, and the software giant's latest report helped validate that surge.
The company hiked its expectations for fiscal 2023, including on the closely watched metric of annual recurring revenue. This boost signaled "confidence not only within the quarter but also for the upcoming quarters," according to Bernstein analyst Mark Moerdler.
Amid a mixed stretch for software earnings, Adobe's (ADBE)results and commentary stood out, Moerdler commented. "We like the fact that the company raised their FY23 targets in the face of difficult macro environment, an important sign of the strength in the business."
He wrote that he expects Adobe to monetize AI "in numerous ways" and thinks the company will be able to drive margin improvement even while making further aggressive investments in the technology.
"Adobe (like Microsoft) is a company that has invested thoughtfully over many years in AI and is well-positioned in the space now," Moerdler wrote, as he lifted his price target on the shares to $585 from $431 and reiterated an outperform rating.
Shares of Adobe were ahead more than 4% in Friday's premarket action.
Derrick Wood of TD Cowen highlighted that the tone on Adobe has shifted in a big way lately.
"In a matter of weeks, investor sentiment has shifted from GenAI being a headwind to compelling tailwind for ADBE, and 2Q results/guide reinforce the latter stance," he wrote. He thinks generative AI can drive a significant boost to Adobe's total addressable market and that the company is "well-positioned to capitalize on this opportunity, with a meaningful build in growth levers starting next year."
He rated the stock at outperform while upping his price target to $575 from $500 after earnings.
See also: Adobe enters AI fray with Firefly
Analysts chimed in with various views on whether Adobe shares will be able to sustain their recent momentum.
"With the stock up 40% over the past month, we would not be surprised to see the shares take a breather at current levels," wrote Evercore ISI's Kirk Materne, who rated the stock at outperform and boosted his price target to $590 from $475 late Thursday. "However, when zooming out and taking a 6-12 month view, we continue to believe Adobe is incredibly well positioned to monetize Gen AI [generative AI] across both its consumer and enterprise customer base and this should keep a positive bias on our/Street estimates" heading into 2024.
Don't miss: Oracle is riding the AI wave, but growth concerns remain, says analyst
Sterling Auty of SVB MoffettNathanson wrote that he and his team "have to give credit where credit is due," though they stayed on the sidelines on Adobe shares and noted that revenue impacts from AI won't really hit until the fourth quarter of 2023.
"There are still questions about competitive threats from Midjourney (Private), Dalle (OpenAI), and others," Auty wrote. "But Adobe has done a very good job rolling out a lot of functionality in a short period of time and initial reactions have been positive. Our expectation is that this will be incremental to growth, but the question is how much."
He brought his price target up to $540 from $360 in his most recent report, while keeping a market perform rating.
Read: AI is ready to take on menial tasks in the workplace, but don't sweat robot replacement (just yet)
Gregg Moskowitz of Mizuho had a similarly balanced view.
Adobe's "fundamentals appear to be on firmer ground, and GenAI offers legitimate upside potential over the medium-term and beyond," he wrote. "That said, the multiple is no longer inexpensive, and much uncertainty remains with respect to Figma," a pending acquisition that has sparked regulatory pushback.
Moskowitz had a neutral rating on the stock, though he raised his price target to $520 from $450 Friday.
More from MarketWatch: Yes, AI is coming for your job. Here's how to prepare
This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
June 16, 2023 07:56 ET (11:56 GMT)
Copyright (c) 2023 Dow Jones & Company, Inc.
ADBE Out of AH short @ 505.10 for +9.75/SH
Last Thurs to Fri ADBE trade +27.40/SH
Fri to Mon ADBE trade +10.65/SH
Wed to Thurs ADBE trade +8.30/SH
Thurs to Thurs AH ADBE trade +9.75
Total gain Thurs last week to Thurs this week = 56.05/SH
NOW, if I had just left the initial buy @ 432.60 alone to tonight's regular session close, the gain would have been 59.30/SH!!!
But, but I did an interim CAT trade while I was out of ADBE yielding 2.40 a share and that was worth about double on an ADBE basis due to dif SPs.
And the CAT trade was strictly a bookmark, a placeholder while waiting to re-enter ADBE, my primary play.
If you add 4.80 into the total, that brings my week long win to 60.85, just barely eeking out the 59.30 if I had just stayed in ADBE from the first buy. Sheesh, $1.55 a share for all that fancy foot stepping, lol.
I won't trouble you with my trade machinations for a while, I promise! LOL
FOMC "might" give us an opportunity.
Well, I made $34/SH last two session but left $11 on the table today and may not be able to get back in. It's at 52 week high so I have to get a pullback before...
Man, I had 422.50 calls, sold last week
Yes and yesterday was just as bad, 3 day rule into play, but on Monday
Adobe Inc. $ADBE
Total Debt (mrq) 4.69B
Adobe Inc. $ADBE
Book Value Per Share (mrq) 29.04
Cashed out awhile ago.....
$ADBE Total Debt (mrq) 4.69B
News: $ADBE Got $5,000? These Are 3 Stocks You Can Buy and Hold Forever
Stocks in companies that are essential to people's day-to-day lives are a good place to invest your money, as they're potentially less vulnerable to the market's sometimes wild swings. I'd classify all of the companies below as essential in one way or another, making them great additions to your...
Find out more ADBE - Got $5,000? These Are 3 Stocks You Can Buy and Hold Forever
Adobe CFO Poised to help Software Maker Shake off Recent Stumble.
John Murphy had big shoes to fill when he stepped into the role of finance chief for Adobe in 2018. His predecessor, Mark Garrett, helped steer the software maker through a decade-long transition as the company shifted from one-off sales of shrink-wrapped boxes of software to monthly subscriptions.
Murphy, a self-described finance geek, said he admires how Garrett and company CEO Shantanu Narayen handled the sea change. “It’s not a 12- and 18-month product cycle anymore. It’s actually, practically in real time,” Murphy said. “It’s just thousands and thousands of innovations that are delivered for the same price …(customers) pay every month.”
Analysts said Murphy is the latest in a string of strong CFOs at the San Jose-based Adobe. They expect he will help the company extend a streak of stellar performance that has sent stock prices skyrocketing from roughly $28 in 2011 to over $300 this year. “It’s a hall of fame of CFOs in terms of what they have done,” said Dan Ives, a managing director at Wedbush Securities Inc.
But Murphy and other company leaders had a rare misstep recently, which has concerned some investors. The company’s $4.75 billion acquisition of marketing company Marketo backfired when subscription bookings for the business didn’t grow as much as expected. The sluggish growth led to a lackluster sales forecast for the fourth quarter. Adobe is scheduled to release fourth-quarter results tomorrow. The company has forecast revenue of $2.97 billion for the period, below the $3.03 billion expected by some analysts. “I think there is still investor skepticism,” about the Marketo acquisition, Ives said.
By next year, all new software companies and 80% of established players will offer subscription-based business models, according to Gartner, a research and advisory firm. Keeping cash flow and margins healthy through a business model shift, however, is a tricky task, Ives said. During the most difficult point in their transition, Adobe’s sales slipped 8% to $4.02 billion in 2013 with net margins retreating to 7.21% from 19.04%, according to FactSet. “Any move to subscription at a lower price, you are going to see a dip in revenue,” Murphy said. “Then it comes back as the subscriptions stack up.” Murphy was chief accounting officer at computer chip maker Qualcomm before taking the same job at Adobe in 2017.
Since 2013, revenue at the company has steadily grown, however. Tomorrow Adobe is expected to report it has posted more than $10 billion in annual revenue for the first time in its history. “There’s not many companies, never mind software companies, that have broken the $10 billion barrier,” Murphy said. Adobe executives expect annual revenues to fall somewhere around $11 billion for 2019, compared to $9.03 billion in 2018. “We’re on a good trajectory.”
Jay Vleeschhouwer, a managing director for Griffin Securities, agrees that Adobe’s performance has been outstanding. “Other software companies view it as the standard for how subscription model transition can and should go,” he said.
Investors, however, were displeased with Marketo’s performance in the third quarter and its impact on the fourth-quarter outlook. Shares of Adobe slipped 1.75% after the release of the financial results. “It was a little bit of a hiccup,” Murphy said. The subscription bookings for Marketo did grow, he added. “It just didn’t grow as fast as we expected,” Murphy said. “And ultimately, obviously, it translates to revenue a little bit in the short term.”
Murphy was a key figure in Adobe’s biggest bet ever, the acquisition of the business-to-business marketing-automation firm Marketo last year. Gloria Chen, senior vice president for strategy and growth, and Murphy “partnered on both the targeting and the diligence” on the transaction, Murphy said. “We’re essentially the M&A team.” Marketing automation allows companies to plan, manage and track promotional campaigns. The transaction was the largest in Adobe’s history and signaled the company’s aspiration to expand its marketing offerings aggressively.
“The Marketo acquisition filled a specific need for them, in what’s called B2B marketing, business to business,” said Rob Oliver, an analyst with private equity firm Baird. “Adobe traditionally hasn’t been as strong there.”
Adobe is known for products like Photoshop housed in its digital media segment. Adobe Reader is in its document cloud business. The digital experience segment offers marketing, data and analytics tools and has posted strong growth in recent quarters. Digital experience, which was beefed up with the Marketo deal as well as the acquisition of e-commerce company Magento, accounted for 27% of Adobe sales, or $2.4 billion.
Oliver is not concerned about the Marketo transaction. “I don’t want to miss the forest for the trees here,” he said. “Adobe is one of the best acquirers within tech. I always tell investors whenever you do a big deal there can be hiccups. But if anyone is going to figure it out, it’s Adobe.”
Vleeschhouwer agrees. “I like to take a long-term view of the company,” he said. “I don’t ignore a quarterly performance, but having been following the company for such a long time, I think they have shown a very strong capability.” Murphy said he believes Marketo is a great fit for Adobe. “We’re investing to capture market share and build out functionality,” he said.
$ADBE It's usually a better idea to wait until after earnings.
Adobe earnings are expected to be very good tomorrow but we would not recommend buying it pre earnings , historically it has a habit of selling off regardless of the earnings results. The stock hit our previous target of $290 and we expect that the pullback has a little further to go, it must also be considered that the valuation is very high, in a market where investors are rushing for value.
Adobe Flips Like An Acrobat
Leading software giant Adobe Systems Inc(NASDAQ:ADBE) is coming under heavy selling pressure since the opening bell. Earlier today, ADBE stock was downgraded to a Hold from Buy at Deutsche Bank. The drop in the stock is now about 2.80 percent. Traders and investors should note that this coming Friday is options expiration for the month of October and many stocks will get hit and benefit by countless upgrades and downgrades that will occur this week. Unfortunately, ADBE stock was downgraded today and shareholders are feeling the pain of the decline. Traders and investors should now watch for daily chart support in ADBE around the $146.85 level. Please remember, daily chart support level are usually good for three to five trading days.