CNBC commentator Jim Cramer expressed concerns over a new Alphabet Inc. (NASDAQ:GOOG) (NASDAQ:GOOG) Google product posing a potential challenge to Adobe Inc. (NASDAQ:ADBE).
Cramer took to X on Tuesday and wrote, “New google product could be tough for Adobe….again…”
Google Pics Takes On Adobe And Canva
On Tuesday, Google launched Google Pics, an AI-powered image creation and editing tool designed to rival Canva and Adobe Express. The tool will be rolled out over the coming weeks to all Google AI Pro and Ultra subscribers, as well as most Google Workspace business customers.
Powered by its Nano Banana model, it lets users create posters, social posts and visuals through prompts rather than traditional design. The tool also offers object editing, text modification, multiple image generations and collaboration, and will integrate with Google Workspace, , initially starting with Docs and Slides.
Unlike Adobe Express, which is designed for creating and designing content from scratch, Google Pics focuses on prompt-based creation, allowing users to generate visuals through prompts rather than manually designing them.
Adobe Faces AI-Driven Growth Concerns
Adobe Inc. (NASDAQ:ADBE) has been facing a rough patch recently. The company’s stock took a hit in July following an analyst downgrade from Morgan Stanley from Equal-Weight to Underweight, and a price target from $366 to $240. The downgrade reflects concerns about AI-driven changes to consumer search and Adobe’s longer-term growth outlook.
Adobe Chief Marketing Officer Lara Balazs said marketing executives are adapting as consumers shift from traditional search engines to AI platforms for product discovery. Adobe tracks product placement in large language models through its LLM Optimizer, reporting a 200% visibility increase for products such as Acrobat and Firefly after deploying the tool.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Image via Shutterstock
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