Adobe shares rose higher Wednesday after the company announced ahead of earnings that it will implement a credit system to charge users when they use Firefly...
Adobe Inc. shares rose Wednesday after the software company announced ahead of its earnings report that it will implement a credit system to charge users when they use Firefly AI, Adobe’s new generative artificial-intelligence tool, in their applications.
Earlier in the day, the company released its Firefly AI for commercial use and said users would get a certain amount of generative credits a month, which would be deducted depending on “the generated output’s computational cost and the value of the generative AI feature used.” In a Wednesday note, Citi Research analyst Tyler Radke, who has a neutral rating and a $570 price target on Adobe, said Firefly will be a “key focus” on Thursday night’s earnings call, namely around “any monetization announcements over the next month.”
As for Firefly AI, he said that Adobe previously allowed generative-AI tools to be used for experimentation and personal projects but not for commercial use. “This opens up widespread use of Firefly generated images in advertising, marketing, and other business purposes,” Thill said.
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