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Adobe (ADBE) Boosts Creative Cloud With Generative Recolor
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Adobe (ADBE - Free Report) introduced a generative AI-backed tool called Generative Recolor, which is currently in beta stage.
Generative Recolor has been developed by integrating Adobe Firefly into Adobe Illustrator. It transforms colors in vector artwork and allows designers to experiment seamlessly with colors using simple text prompts.
Moreover, Generative Recolor offers quick recoloring of graphics to designers. Also, it enables them to generate numerous color variations from a single artwork file.
Firefly, the company’s family of creative generative AI models, will boost the creative workflows within Adobe Illustrator with additional speed, precision and power.
Thus, the latest integration will accelerate the creative process by reducing the time required for color processes.
We believe Adobe is likely to gain strong traction among designers with the useful and time-saving features of Generative Recolor.
The latest move has bolstered the company’s Creative Cloud offerings, which, in turn, are likely to aid the performance of the Digital Media segment in the days ahead.
In first-quarter fiscal 2023, the segment generated revenues of $3.4 billion, which improved 9% on a year-over-year basis. Further, Creative Cloud generated $2.76 billion in revenues, up 8% year over year. Creative ARR was $11.3 billion.
For second-quarter fiscal 2023, Adobe expects Digital Media revenues in the range of $3.45-$3.47 billion. Also, net new annualized recurring revenues (ARR) in the Digital Media segment are projected to be $420 million.
Growing Generative AI Efforts
The latest Firefly-Illustrator integration boosts Adobe’s generative AI efforts.
Apart from that, the company recently announced generative AI innovations in Adobe Sensei GenAI at Adobe Summit EMEA 2023.
Notably, Sensei GenAI services are now capable of aiding a co-pilot for marketers and other customer experience teams to boost productivity.
Moreover, the innovative Sensei GenAI services will now be integrated across Experience Cloud applications like Customer Journey Analytics, Experience Manager, Journey Optimizer and Marketo Engage.
We note that all these endeavors are likely to strengthen Adobe’s presence in the booming generative AI space.
According to a report from The Brainy Insights, the market for generative AI is expected to reach $188.62 billion by 2032, seeing a CAGR of 36.1% between 2022 and 2032.
Growing prospects in this market are expected to instill investor optimism in the stock.
Adobe has gained 42.3% on a year-to-date basis, outperforming the industry’s growth of 37.9%.
Image: Shutterstock
Adobe (ADBE) Boosts Creative Cloud With Generative Recolor
Adobe (ADBE - Free Report) introduced a generative AI-backed tool called Generative Recolor, which is currently in beta stage.
Generative Recolor has been developed by integrating Adobe Firefly into Adobe Illustrator. It transforms colors in vector artwork and allows designers to experiment seamlessly with colors using simple text prompts.
Moreover, Generative Recolor offers quick recoloring of graphics to designers. Also, it enables them to generate numerous color variations from a single artwork file.
Firefly, the company’s family of creative generative AI models, will boost the creative workflows within Adobe Illustrator with additional speed, precision and power.
Thus, the latest integration will accelerate the creative process by reducing the time required for color processes.
We believe Adobe is likely to gain strong traction among designers with the useful and time-saving features of Generative Recolor.
Adobe Inc. Price and Consensus
Adobe Inc. price-consensus-chart | Adobe Inc. Quote
Digital Media Segment in Focus
The latest move has bolstered the company’s Creative Cloud offerings, which, in turn, are likely to aid the performance of the Digital Media segment in the days ahead.
In first-quarter fiscal 2023, the segment generated revenues of $3.4 billion, which improved 9% on a year-over-year basis. Further, Creative Cloud generated $2.76 billion in revenues, up 8% year over year. Creative ARR was $11.3 billion.
For second-quarter fiscal 2023, Adobe expects Digital Media revenues in the range of $3.45-$3.47 billion. Also, net new annualized recurring revenues (ARR) in the Digital Media segment are projected to be $420 million.
Growing Generative AI Efforts
The latest Firefly-Illustrator integration boosts Adobe’s generative AI efforts.
Apart from that, the company recently announced generative AI innovations in Adobe Sensei GenAI at Adobe Summit EMEA 2023.
Notably, Sensei GenAI services are now capable of aiding a co-pilot for marketers and other customer experience teams to boost productivity.
Moreover, the innovative Sensei GenAI services will now be integrated across Experience Cloud applications like Customer Journey Analytics, Experience Manager, Journey Optimizer and Marketo Engage.
We note that all these endeavors are likely to strengthen Adobe’s presence in the booming generative AI space.
According to a report from The Brainy Insights, the market for generative AI is expected to reach $188.62 billion by 2032, seeing a CAGR of 36.1% between 2022 and 2032.
Growing prospects in this market are expected to instill investor optimism in the stock.
Adobe has gained 42.3% on a year-to-date basis, outperforming the industry’s growth of 37.9%.
Zacks Rank & Other Stocks to Consider
Currently, Adobe carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the broader technology sector are Palo Alto Networks (PANW - Free Report) , NVIDIA (NVDA - Free Report) and AMETEK (AME - Free Report) . While Palo Alto Networks and NVIDIA sport a Zacks Rank #1 (Strong Buy) each, AME carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Palo Alto Networks shares have gained 65% in the year-to-date period. The long-term earnings growth rate for PANW is currently projected at 31.5%.
NVIDIA shares rallied 173.8% in the year-to-date period. Its long-term earnings growth rate is presently projected at 23.02%.
AMETEK shares have increased by 10.2% in the year-to-date period. The long-term earnings growth rate for AME is currently projected at 8.95%.