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The Key Takeaways
- Adobe stock tumbled Thursday after the company issued a fiscal 2025 revenue outlook below analysts' expectations.
- Analysts lowered their Adobe price targets but maintained "buy" ratings on optimism for the company's generative AI monetization.
- Adobe plans to launch a more expensive version of Firefly, its AI-based generative toolset.
Adobe shares (ADBE) fell on Thursday following the disappointing revenue forecasts from the previous day. However, analysts are still optimistic, even if they have moderated expectations, about the company’s ability to monetize artificial intelligence.
Creative Cloud Company “has been a frustrating stock for much of FY24,” Mizuho Americas analyst said this in a Thursday note. This firm has maintained its “outperform” The rating agency lowered the price target from $640 to $620. Adobe stock fell The stock dropped 12.6% to $480.37 after opening. In 2024, the stock price has declined by nearly 20%.
Firefly AI toolset to be more expensive
Analysts at Mizuho are still optimistic about the price despite the lower target. “remain confident ADBE will significantly monetize its Generative AI innovations going forward,” The writer wrote.
AlphaSense provided a transcript from an earnings conference call in which Adobe Digital Media’s David Wadhwani revealed that Adobe plans to release a version with more features of Firefly. The offer is designed to help customers. “monetize new users” Wadhwani stated that he would increase the average revenue per customer.
Bank of America analysts lowered Adobe’s price target on Thursday to $605 from $640, but maintained the same level of expectation. “buy” rating.
The BofA analysts described the most recent quarter as ending "a year of delayed gratification for AI," although they said they've seen "some encouraging leading indicators for reacceleration as we head into next year."
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