Adobe stock slips even as Baird says Firefly, AI moves 'causing a lot of buzz'
David Tran


Adobe (NASDAQ:ADBE) shares slipped fractionally in mid-day trading on Wednesday even as investment firm Baird said the company's new generative AI tool, Firefly, and other AI-linked announcements are "causing a lot of buzz" among investors.


Analyst Rob Oliver, who has a neutral rating on Adobe (ADBE) shares, said the company's management is "bullish" on its long-term product roadmap and positioning among its competitors. 



"We are warming to the shares with valuation currently [roughly 20.5 times the next 12 months free cash flow], though acknowledge Figma may remain a sentiment headwind near-term," Oliver wrote in a note to clients.


Regarding Firefly, Oliver said the technology will first be focused on images and text, but it's likely to move to other areas, including video, 3D and aggregated content, among others. 


The analyst also noted that experience led growth was a consistent theme at Adobe's (ADBE) 2023 Summit, with product and marketing teams likely to be more tightly integrated now than in the past. 


As such, Oliver said he is "confident" in the company's long-term strategy and even though the pending Figma acquisition could impact near-term sentiment, it's likely the company is "well positioned" for future profitable growth.


Earlier this month, Adobe (ADBE) reported strong first-quarter results that handily topped Wall Street expectations.