Adobe Unveils Major AI Expansion and $25B Buyback Despite Cautious Guidance

• Adobe stock sold off after reporting record revenue but muted guidance for next quarter • Adobe unveiled Firefly, an AI tool for its Creative Cloud and other products, which has helped drive growth • Firefly has already generated 6.5 billion assets for users, but monetization of these new AI tools remains a challenge • Adobe announced a new $25 billion stock buyback program over the next 4 years to boost EPS • While guidance was muted in the near term, Adobe still has strong long-term potential from AI that the market may be underestimating