Adobe surges as optimism about AI drives the annual revenue estimate

Adobe’s stock went up 14% before the market opened on Friday after the company raised its income forecast for the year. This was because more people were using Adobe’s AI-powered editing tools, particularly Firefly, which gave investors confidence in Adobe’s ability to compete with AI startups like OpenAI.

Adobe stock went up 14% before the market opened on Friday. Because more people were using its AI-powered editing tools, the company that makes Photoshop raised its income forecast for the year.

It put investors’ minds at ease that Adobe, a big name in photo and video editing software, might lose customers to AI startups like OpenAI, which makes software for Dall-E and lets users make images with simple text commands.

It also showed that Adobe’s AI efforts, like the image-making software Firefly, which it released last year, were paying off.

Senior executive David Wadhwani said that existing users were upgrading to more expensive plans to get access to Firefly.

According to RBC Capital experts, the increased availability of Firefly has resulted in better traction among both new and existing users.

Adobe’s Market Value Could Surge by $30 Billion on Pre-Market Gains

If the gains seen before the market opens continue, Adobe’s market value will increase by about $30 billion.

Its shares have lost about 23% so far this year, while the S&P 500 index has gained almost 14%.

On Friday, at least six brokerages raised their target prices for the stock.

On Thursday, the company raised the midpoint of its fiscal 2024 revenue forecast to $21.45 billion, up from $21.40 billion the day before.

It made $3.91 billion from its digital media business, which was about 74% of its $5.31 billion in sales in the second quarter.

Analysts thought the total amount of sales would be $5.29 billion.