Gemini lands inside Avid Media Composer

Jim Cramer has been arguing for months that Adobe's troubles stem from a broader AI displacement thesis rather than company-specific missteps. In his June 16 show, he noted Adobe was down more than 70% from its 2021 peak and more than 40% year to date, trading at 8.5 times the midpoint of that year's earnings forecast, and he tied the pressure to new AI platforms that have gotten very good at writing custom software. The Avid announcement gives that thesis a concrete example: Google's Gemini Enterprise is now embedded in professional editing software that shares Hollywood's post-production stack with Adobe Premiere.

The scale behind the deal is notable. Google Cloud's most recent quarterly revenue was $24.77 billion, up 82% year over year, and CEO Sundar Pichai told investors that Gemini models process 22 billion API tokens per minute, the Gemini App has 950 million monthly active users, and nearly 90% of the Fortune 100 use Gemini Enterprise. Avid's own research found that 79% of 120 surveyed professional editors already use AI in their workflows. Those numbers suggest the Avid integration is arriving in a market that is already receptive to AI tools, rather than trying to create demand from scratch.

The open question is how far this pattern extends. Avid's post-production niche is small on its own, and Google Cloud's backlog of over $460 billion signals ample capacity to pursue similar vertical deals. Whether this remains a single partnership or becomes a repeatable playbook for entering creative software categories that Adobe once controlled uncontested is likely what determines how much additional pressure Adobe's stock faces.