Adobe launches mobile Firefly app with expanded AI model options

SAN JOSE - Adobe (NASDAQ:ADBE), a prominent player in the software industry with a market capitalization of $171.22 billion, released its Firefly mobile app for iOS and Android on Tuesday, extending its AI-assisted content creation platform to smartphones and adding several third-party AI model integrations. The company’s strong market position is reflected in its impressive 89.25% gross profit margins. InvestingPro data shows Adobe maintains robust financial health, with 12 additional key metrics available to subscribers.

The new mobile app allows users to generate and edit images and videos on the go using text prompts, with features including text-to-image, text-to-video, image-to-video conversion, and tools for removing or adding objects to images.

Adobe has expanded its ecosystem of AI models by integrating offerings from Ideogram, Luma AI, Pika, and Runway. These join existing partnerships with OpenAI, Google, and Black Forest Labs, providing users with a broader range of aesthetic styles to choose from within the Firefly platform.

The company also introduced Firefly Boards in public beta, a collaborative tool that allows creative teams to ideate together using AI-powered moodboarding. The feature now includes video capabilities, enabling professionals to remix uploaded clips or generate new footage using various AI models.

"Our goal with Firefly is to deliver creators the most comprehensive destination on web and mobile to access the best generative models from across the industry," said Ely Greenfield, Senior Vice President and Chief Technology Officer at Adobe.

Content created in Firefly automatically syncs with users’ Creative Cloud accounts, facilitating workflow between mobile devices and desktop applications like Photoshop and Premiere Pro.

According to Adobe, creators worldwide have used Firefly’s generative AI models to create more than 24 billion assets. The company reported that traffic to Firefly grew over 30 percent quarter over quarter, with paid subscriptions nearly doubling in the same period. This growth aligns with Adobe’s overall revenue expansion of 10.63% over the last twelve months. InvestingPro analysis reveals 25 analysts have revised their earnings upward for the upcoming period, suggesting strong growth potential. For detailed insights and comprehensive analysis, investors can access the full Pro Research Report, available exclusively to subscribers.

The Firefly mobile app is available as a standalone experience and as part of Creative Cloud. All AI-generated content includes Content Credentials that indicate which models were used in creation, according to the company’s press release statement. Based on InvestingPro’s Fair Value analysis, Adobe’s stock currently appears undervalued, presenting a potential opportunity for investors interested in the growing AI and creative software market.

In other recent news, Adobe’s financial performance and strategic initiatives have been the focus of several analyst reports. Adobe’s first-quarter revenues reached $5.87 billion, marking an 11% growth on a constant currency basis, as reported by TD Cowen. This exceeded their estimates, prompting a slight raise in Adobe’s fiscal year 2025 guidance. However, TD Cowen lowered its price target to $470, citing pressures in sector valuations.

Similarly, Citi maintained a Neutral rating but reduced its price target to $450, expressing concerns over the sustainability of Adobe’s AI growth strategy. On a more optimistic note, Bernstein raised its price target to $530, highlighting Adobe’s potential for 10% revenue growth driven by AI and strategic changes. UBS maintained its Neutral rating with a $430 price target, noting Adobe’s modestly above-expected second-quarter results but expressing concerns over limited catalysts for stock growth.

RBC Capital reaffirmed its Outperform rating and $480 price target, acknowledging Adobe’s solid performance across key metrics and strategic roadmap progress. Despite these varied assessments, Adobe’s AI initiatives and pricing strategies remain central to its future growth potential, as highlighted by analysts.

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