Adobe (NASDAQ:ADBE) has reportedly acquired Rephrase.ai, an Indian startup known for its artificial intelligence (AI)-based video creation platform. As part of the terms, the majority of Rephrase.ai’s employees will join Adobe. With this deal, ADBE will be able to bolster its video content offerings by integrating Rephrase.ai’s technology with its own video-editing platform, Creative Cloud.
It is worth mentioning that Rephrase.ai’s platform uses AI to convert text into video. It allows video creators to build digital avatars and enables the creation of professional-looking videos.
The latest acquisition is Adobe’s first-ever deal in the AI space. This move aligns with the current trend, where many companies are investing in this field due to its escalating demand.
Recently, Alphabet (GOOGL)-owned Google disclosed plans to invest about $2 billion in the AI firm Anthropic. Furthermore, Chinese technology giant Alibaba (BABA) unveiled Tongyi Qianwen 2.0, its upgraded version of the AI model, in late October.
Is Adobe a Buy, Hold, or Sell?
Given the company’s initiatives to bolster its AI capabilities, Wall Street analysts are optimistic about ADBE’s prospects. The stock has 20 Buys, seven Holds, and one Sell for a Moderate Buy consensus rating. Further, the average Adobe stock price target of $612.17 implies 1.22% downside potential from current levels.
