Jim Cramer called it months ago, and now Google has planted its AI inside the same Hollywood editing software that Adobe has long called home territory. The question is whether this is a one-off partnership or the opening move in…
Hollywood film editing bays just got a little more crowded. Jim Cramer’s September 1 warning that Google (NASDAQ:GOOGL | GOOGL Price Prediction) was coming for Adobe (NASDAQ:ADBE)’s turf now has a case study behind it. In the early morning hours of September 11, 2026, Google Cloud and Avid announced that Gemini Enterprise is embedded directly into browser-based Avid Media Composer, the professional video editor that shares Hollywood’s post-production stack with Adobe Premiere. The development landed the day after Adobe reported Q3 earnings, beating though its shares fell anyway in this tough competitive environment, down 11.5% in a week, 27.8% over a year, and 61.6% over five years.
Cramer’s Adobe Thesis, in His Own Words
Cramer has been sounding the alarm on Adobe for months. On his June 16 show, he framed the stock as collateral damage in a broader AI displacement thesis: “Adobe’s been a house of pain, down more than 70% from its peak in 2021. In fact, it’s down more than 40% year to date. At these levels, the stock sells for just 8.5 times this midpoint of this year’s earnings forecast.”
He pinned the problem squarely on encroaching AI platforms: “Then, a couple of years ago we started hearing about all these new programs from the big AI platforms, programs that have gotten very good at writing custom software. Now this is really the root of the AI displacement thesis across the entire enterprise software edifice, and that includes Adobe.”
Gemini’s Scale Makes the Threat Credible
The Avid deal is part of a broader pattern. Google’s Q2 FY2026 report showed Google Cloud revenue of $24.77 billion, up 82% year over year, with Gemini adoption reaching enterprise saturation. Google’s chief executive Sundar Pichai told investors:
“Gemini models now process 22 billion API tokens per minute and the Gemini App has 950 million monthly active users.”
He added that “nearly 90% of the Fortune 100” now use Gemini Enterprise, the same product being welded into Avid’s timeline.
What Editors Actually Get
Avid surveyed 120 professional editors in Q2 2026 and found 79% already use AI in their workflows, with 87% saying the technology is most valuable when it frees up creative time. The integration delivers innovation like agentic editingnual media logging, and connected newsroom-to-timeline workflows, attacking what the companies call the industry’s two biggest bottlenecks: media discovery and timeline organization
Verdict for GOOGL Holders
Alphabet trades at a trailing P/E of 16.7 with a $4.15 trillion market cap and 2026 CapEx guidance of $175 billion to $185 billion aimed at exactly this kind of enterprise land grab. Avid’s post-production niche is small on its own. As a proof point that Google Cloud can push Gemini into vertical creative software that Adobe once controlled uncontested, it fits the pattern Cramer flagged. Google Cloud backlog already sits at over $460 billion, and Hollywood’s editing bays are the newest end users.
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Gerelyn Terzo is the author of dividend investing handbook “Dividend Investing Strategies: How to Have Your Cake & Eat It Too.” A veteran financial journalist, she covers agri-finance for outlets like Global AgInvesting and the broader stock market and personal finance for 24/7 Wall Street. She began at CNBC and later helped launch Fox Business in New York. Gerelyn currently resides in Woodland Park, Colorado and dabbles in nature photography as a hobby.
