Adobe Explores OpenAI Partnership to Aid Video Editing ToolsAdobe ( NASDAQ:ADBE ), the software giant known for its innovative tools in creative content production, is delving deeper into the realm of artificial intelligence (AI) to enhance its renowned Premiere Pro video editing software. In a strategic move, Adobe ( NASDAQ:ADBE ) is exploring a potential partnership with OpenAI and other third-party AI developers to integrate generative AI tools directly into Premiere Pro.
This development marks a significant step forward for Adobe ( NASDAQ:ADBE ) as it seeks to empower video editors with AI-based features that streamline complex tasks and enhance creative possibilities. Among the planned AI-based features are the ability to seamlessly fill in parts of a scene with AI-generated objects and remove distractions without manual intervention, revolutionizing the video editing process.
At the heart of Adobe's AI endeavors lies Firefly, a powerful AI model already deployed in Adobe Photoshop for editing still images. By extending Firefly's capabilities to Premiere Pro and exploring partnerships with leading AI developers like OpenAI, Adobe ( NASDAQ:ADBE ) aims to bolster its position as an industry leader in AI-driven creative tools.
However, Adobe's decision to embrace third-party AI tools also raises questions about revenue sharing and ethical considerations. While Adobe ( NASDAQ:ADBE ) is committed to upholding ethical AI practices and ensuring user safety, the integration of third-party AI models introduces complexities regarding revenue sharing and accountability.
Despite these challenges, Adobe ( NASDAQ:ADBE ) remains steadfast in its commitment to providing users with innovative AI-driven solutions while maintaining transparency and ethical standards. With the potential for expanded choice and functionality through third-party AI models, Adobe users can expect a new era of creativity and efficiency in video editing.
Technical Outlook
Adobe Inc. stock ( NASDAQ:ADBE ) has a weak Relative Strength Index (RSI) of 28.73. However, the Monthly price chart of the stock shows an inverted hammer forming at the close of last week's trading session.
ADB trade ideas
ADBE at Volume Profile NodeThis morning NASDAQ:ADBE triggered a Spike Alert on the opening 30 minute bar. I double checked this signal against Volume Profile.
On the weekly there is a major Volume Profile node at 480 considering the bullish trend from September 2022 to January 2024. The spike this morning touches this level and have moved off with a significant Spike:
The Spike allows me to start a trade on the 30 minute timeframe with low risk and a 3:1 Reward/Risk ratio with the intent to play the higher timeframe Weekly move as a major pullback.
If we increase the time considered the Volume Profile node becomes even more significant as the POC (Point of Control) for the price action going all the way back to COVID low.
ADBE potential buy setupReasons for bullish bias:
- Price bounced from support
- Gap down after positive earnings most likely would be filled
- Bullish divergence
Here are the recommended trading levels:
Entry Level(CMP): 521.19
Stop Loss Level: 481.40
Take Profit Level 1: 560.98
Take Profit Level 2: Open
ADBE BREAKOUT $900 PTADBE is not only sitting close to a yearly low, but also has formed a MASSIVE cup and handle on both the daily, and monthly chart!
RSI is oversold below 40.
Looking for a breakout from the handle.
PT is over $900 for September/October 2025.
This is not financial advice. Just my interpretation of the chart pattern and fundamentals.
ADBE will give you a Christmas gift this yearIgnore the chart. It's incredibly distorted, maybe the time frame is too much for TradingView. I might try and upload an undistorted version in the comments below. Anyway.
I thought ADBE might have a breakout soon so I spent a couple hours this morning making this chart. Conclusion: Holders of ADBE will get a Christmas present this year. ADBE will try to match its previous high in 2021 by the end of the year.
So many stocks. So little capital. 😊
Happy trading.
ADBE Adobe Options Ahead of EarningsIf you haven`t bought the dip on ADBE:
Then analyzing the options chain and the chart patterns of ADBE Adobe prior to the earnings report this week,
I would consider purchasing the 560usd strike price Puts with
an expiration date of 2024-3-15,
for a premium of approximately $27.70.
If these options prove to be profitable prior to the earnings release, I would sell at least half of them.
ADBE February 24 Trade and Lessons LearnedAs shown on the chart, here was what happened
I bought NASDAQ:ADBE on February 5, right near the resistance, expecting a break out into new high.
The stock did not break out and started to go down.
I sold 50% of my position on February 16 as it crossed down the MA-150 on huge volume. Actually I should have started selling on February 15 as it crossed down its MA-150 on higher volume. I was a little reluctant back then because the overall market was still very good and I hoped the stock will soon recover.
At its MA-200, the stock started to move up again. On March 1 it crossed up MA-150 but could not go further, instead moved down again the next day. That was when I sold the rest of my position.
Had it not recoverd from the MA-200 on February 21 and moved down below it, I would also sell the rest of my position.
Similar to NASDAQ:AAPL (see the idea in the related idea section), this stock was a laggard during the uptrend from January 24.
Lesson learned:
When the overall market is in uptrend, you should put your money into the strongest stocks.
If a stock is moving down its MA-50/150/200 during an overall market uptrend while other stocks are moving up, just sell it. You can always buy it later.
Weak stocks during uptrend will become even weaker during correction.
Strongest stocks during uptrend can struggle to move up during correction, but generally they will decline less than weak stocks during the same correction.
ADBE Strong Selloff and Potential Buy OpportunityNASDAQ:ADBE met earnings expectations yesterday, but set low guidance for 2024. ADBE is having a strong selloff from this low guidance, and this selloff is taking place near previous all time highs. I think ADBE is a very bullish stock, and I am interested in buying this dip. I'm thinking there will be a buy opportunity below $480 and will track ADBE to look for a setup. More downside is likely for now.
Long-term bullish zone 420-450ADBE gapped down 14% today below the 200MA. Such a huge drop has confirmed that it is correcting the whole rally from Sept 2022. Expect a bounce and further downside into the 0.5 to 0.618 retracement of this rally in the monthly timeframe. In the daily timeframe, it would coincide with the zone between 420-450 I expect in April.
Short-term bearish until April. Long-term bullish. Great opportunity for long-term investment.
ADOBE: RED FLAG! downtrend possible till summer & beyond (2025)An yearly upward cycle has had all the conditions to close and now a new T+5i is on the edge. This means that we can not go back to the tops for at least...3 months.
497.86 is the critical swing that if broken will bring downtrend at least till summer time at most till 2025. (this is also a first target price.
In general such situation allows to have better profits Use by shorting the top rather than buy the lows.
For ad hoc analysis on the stocks you want contact us in pvt.
Adobe Tumbles Amidst AI Struggles and Fierce CompetitionAdobe ( NASDAQ:ADBE ), the pioneering force behind creative software solutions like Photoshop, faced a significant setback as its stock plummeted by 12% following a disappointing quarterly forecast. This downturn, fueled by fears of intensified competition and concerns over Adobe's ability to capitalize on generative AI integrations, underscored the challenges ahead for the tech giant.
In the ever-evolving landscape of tech, Adobe ( NASDAQ:ADBE ) stands alongside industry heavyweights like Microsoft and Google, each vying for supremacy in AI innovation. However, Adobe's recent stumble has raised doubts about its capacity to effectively monetize AI features across its creative suite, leaving investors wary of its future prospects.
Compounding the pressure are the emergence of AI startups such as Stability AI and Midjourney, poised to disrupt Adobe's longstanding dominance in the graphics industry. Analysts from RBC Capital Markets highlighted investor apprehension regarding the "GenAI upside," reflecting concerns about Adobe's ability to leverage AI for sustained growth and profitability.
Despite forecasting $440 million in net new annual recurring revenue for its digital media segment, a decrease from the previous year's figures, Adobe ( NASDAQ:ADBE ) failed to meet market expectations. CEO Shantanu Narayen acknowledged the disparity between projections and actual performance, citing potentially inflated forecasts for the second quarter.
The fallout from Adobe's lackluster forecast extended beyond financial metrics, potentially erasing over $30 billion of the company's market value. Despite experiencing a remarkable 77% surge in 2023, Adobe's shares have faltered by 4% this year, highlighting investor uncertainty amidst conflicting signals from the company.
Analysts from Piper Sandler highlighted the challenge of deciphering Adobe's messaging, noting the company's ongoing efforts to monetize AI across its platforms. Despite these challenges, Adobe's decision to announce a $25 billion stock buyback signals confidence in its long-term strategy, following regulatory setbacks in its attempt to acquire Figma.
However, Adobe's ( NASDAQ:ADBE ) stock valuation, trading at 30.41 times its forward profit estimates compared to industry peers like Microsoft and Salesforce, raises questions about its competitive positioning. As Adobe navigates the competitive landscape and grapples with AI integration challenges, the road ahead remains uncertain.
Adobe Inc. (‘ADBE’)Shares of Adobe Inc. (symbol ‘ADBE’) have incurred losses in the last quarter of around 7% with the majority of it being made in the last two weeks of February. The company’s earnings report for the fiscal quarter ending February 2024 is due for release on Thursday 14th March, before the market opens. The consensus EPS is $2.97, against $3.57 in the same quarter last year.
As of 30/11/2023, the company had a strong current ratio of 134% meaning that they have the ability to repay any short-term obligations with the current assets at hand and therefore be somewhat safe from any minor financial turbulence. Also, the total assets outweigh total liabilities at a ratio of more than 2:1 while long-term debt has declined by 0.14% year over year. All these indications show that Adobe has a sound financial image to display and therefore capable of attracting strong investors.
From the technical analysis perspective, the price has found sufficient support on the lower band of the Bollinger bands and has corrected to the upside. At the time of this report being written, the price is testing the resistance of the 38.2% of the daily Fibonacci retracement level which is also an inside resistance area of price reaction in the early days of 2024. The Stochastic oscillator is in neutral levels indicating that the price has the potential to move in either direction while the 50-day moving average is trading above the 100-day moving average showing that the overall bullish momentum is still in effect. The Bollinger bands are also quite expanded therefore showing that volatility for the share is boosted. All of these combined support a possible buying narrative and if this is proven to be correct, then the first area of possible resistance might be found around the $585 price area given that the price manages to make a valid break above the $572 level which is the major technical resistance level of the short-term outlook.