Can Adobe Maintain Its Momentum? (CNBC)
There’s nothing that Wall Street hates more than uncertainty, and investors may be wondering about Adobe Systems Incorporated (NASDAQ:ADBE) as it makes a major transition in its business model. Adobe—still the dominant leader in the multimedia software market—has been working to transform its business from the traditional “software sold in a box” to an online/cloud subscription-based model. So far the transition has gone well. On Tuesday, the company will report results for its second quarter, and investors will be watching closely to see if the company can continue its momentum after a strong start to the year. The stock, trading at around $43, is up 25 percent so far this year. Given the early struggles that Microsoft Corporation (NASDAQ:MSFT) experienced with its Office 360 subscription, analysts had doubts that Adobe Systems Incorporated (NASDAQ:ADBE) would make its transition as well as it has.
Personalized Online Ads Engage Consumers (FoxBusiness)
While shoppers appreciate the personal touch they get from some online retailers, the majority aren’t willing to share too much personal information to get it, new research shows. A study by Adobe Systems Incorporated (NASDAQ:ADBE) discovered that 28 percent of U.S. online shoppers feel it’s valuable when a website makes personalized product and service recommendations. However, most shoppers still aren’t willing to share private information in exchange for that personalized and customized online experience. Specifically, more than half of those surveyed think asking for a Social Security number and about personal preferences beyond the product their considering buying crosses the line from customization to invasion of privacy.
Adobe’s Subscription-Only CC Release Carries Obvious Upside But Big Risk (Forbes)
Adobe Systems Incorporated (NASDAQ:ADBE) has just released the latest versions of its Creative Cloud (CC) applications. This is a good time to step back and take a look at what’s been an eventful six weeks for the software maker. Imagine you’re a top executive at Adobe. Your company has generated just over 1$ billion in revenue the previous quarter and the stock is riding a 5 1/2 year high ahead of the company’s annual customer conference, for which you’ve been tabbed to deliver the keynote address. Good times. Oh, one more thing. You’re going to use that keynote slot to announce a seismic shift in your company’s business model…
Google Enhanced Campaigns Increase Cost Per Click (MediaPost)
Search advertisers will need to learn how to compensate for rising costs per click as Google Inc (NASDAQ:GOOG) gains profits from the migration to AdWords Enhanced Campaigns. CPCs on the search engine rose more than 6% during the last three months alone. The findings, per Adobe Systems Incorporated (NASDAQ:ADBE), come after analyzing Google Inc (NASDAQ:GOOG) ad campaigns from nearly 100 U.S. advertisers. They spent in aggregate more than $100 million from April through June. The deadline for migration to the new AdWords platform kicks in July 22. The shift will require automation and data to analyze campaigns and compensate for rising bid costs. Sid Shah, Adobe Systems Incorporated (NASDAQ:ADBE) director of business analytics, attributes the decline to mobile traffic and the uptick to Enhanced Campaigns.
Was Adobe’s 5-Year High a Flash in the Pan? (Fool)
Tomorrow, Adobe Systems Incorporated (NASDAQ:ADBE) will release its latest quarterly results. Lately, investors have faced two very different visions of the software company, with backward-looking results pointing to steep contractions in revenue and earnings but the share price suggesting optimism about the company’s future. For many casual investors, Adobe’s most commonly used products might seem like pure loss leaders, as many users don’t pay for its ubiquitous PDF reader. But although some recent moves with its higher-value software packages are hurting revenue in the short run, they could pay off for the company quite nicely over time. Let’s take an early look at what’s been happening with Adobe Systems Incorporated (NASDAQ:ADBE) over the past quarter and what we’re likely to see in its report.