New York, Jan 23, 2026, 20:19 EST — Market closed.
Adobe shares edged up 0.4% to $301.07 on Friday, finding some footing after a choppy run for tech stocks. The software giant unveiled a more focused “IP-safe” generative AI offering tailored for studios and talent agencies.
The shift was modest, but the timing matters. Investors enter a week where AI needs to prove it’s more than just headlines—now it’s about real revenue, particularly for software firms.
Wall Street is turning its focus back to earnings and interest rates after recent volatile moves sparked by geopolitical events. Investors now face a Federal Reserve decision alongside a packed schedule of earnings from major U.S. firms. “It’s been a little bit of a short but steep roller-coaster ride,” noted Yung-Yu Ma, chief investment strategist at PNC Financial Services Group. (Reuters)
Adobe is working on “private, IP-safe” Firefly Foundry “omni-models”—customized models trained exclusively on a client’s own intellectual property, not on broad internet data. This approach aims to help studios deploy AI without sparking copyright disputes. Hannah Elsakr, Adobe’s vice president of genAI new business ventures, told The Verge that major clients want tools capable of handling “multiple products, characters” and their movements, “for video and for 3D.” (The Verge)
Adobe announced Firefly Foundry, which runs on “commercially safe” AI models tailored to a studio’s or brand’s proprietary content. It can generate images, video, audio, 3D, and vector outputs. Partners include major talent agencies like Creative Artists Agency, United Talent Agency, and William Morris Endeavor, as well as studios such as B5 Studios and Promise Advanced Imagination, according to the company. Bryan Lourd from CAA said the initiative “recognizes the importance of protecting creators’ rights.” Jamie Byrne of Promise added that the integrated workflow lets artists “push ideas further.” (Adobe Blog)
The broader market remained uneven. The Dow dropped 0.58% on Friday, while the S&P 500 finished almost unchanged and the Nasdaq gained 0.28%. Intel tumbled sharply after delivering a weak forecast, as investors braced for key tech earnings ahead. “Going into results, we’re going to be in a ‘show-me’ period,” said Julian McManus, portfolio manager at Janus Henderson. (Reuters)
The “show-me” attitude has weighed on some software names. The AI-driven rally in the market is patchy—hardware and chip-related firms are pulling ahead, while major software players like Adobe and Salesforce trail behind. Investors remain divided over how soon AI will translate into pricing power. (Investopedia)
Firefly Foundry won’t turn things around overnight. Studios operate on their own timelines, and investors need to see clear details on Adobe’s pricing for these private models, the speed of their rollout, and if the product generates new demand or simply shifts current Creative Cloud budgets.
Traders are expected to view Adobe in the next session as a gauge for how the market values AI across software, not just in semiconductors—particularly if upcoming earnings from major companies shift sector expectations next week.
Macro risk remains a key factor. The Fed’s upcoming policy meeting is set for Jan. 27–28, followed by a press conference on Jan. 28. (Federal Reserve)
Adobe’s next key event is its Q1 FY2026 earnings call on March 12. Investors will be watching closely for early evidence that Firefly Foundry is generating actual bookings, not just buzz. (Adobe)
