Still, the bigger question for Adobe is whether it can keep up its quality in web-content management despite rising levels of competition. Industry analyst Forrester highlighted Adobe Systems Incorporated (NASDAQ:ADBE)’s platform as having broad application, but it also noted the efforts that Oracle Corporation (NASDAQ:ORCL), Hewlett-Packard Company (NYSE:HPQ), and International Business Machines Corp. (NYSE:IBM) have made in trying to make their digital experiences more appealing. In particular, HP has hinged its turnaround on moving away from commoditized businesses like PCs toward higher-margin software and services, hoping to use its extensive customer base to cross-sell services. Yet both IBM and Oracle have also been moving in the same direction, with IBM particularly having improved its web-content management offerings in order to broaden their appeal not just to the largest corporate customers but also to mid-sized companies as part of IBM’s overall goal of building a broader customer base.
In Adobe’s quarterly report, watch for updates on subscription numbers for its Creative Suite software. That should give you the best sense of whether the company is on track to renew its growth after its transition to a subscription model is complete.
The article Was Adobe’s 5-Year High a Flash in the Pan? originally appeared on Fool.com.
Fool contributor Dan Caplinger has no position in any stocks mentioned. You can follow him on Twitter @DanCaplinger. The Motley Fool recommends Adobe Systems. The Motley Fool owns shares of International Business Machines (NYSE:IBM) and Oracle.
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