Adobe Caves to HTML5 Dominance in the Mobile Market
Apple’s (NASDAQ:AAPL) years-old embargo on Adobe (NASDAQ:ADBE) Flash landing on the iPhone and iPad has more or less forced Adobe (NASDAQ:ADBE) to withdraw Flash from the game of mobile devices. Apple’s (NASDAQ:AAPL) move against Flash paved the way for HTML5 to become the preferred platform for mobile content. Adobe has even conceded to HTML5’s dominance and has diverted resources to support the standard.
Adobe’s (NASDAQ:ADBE) shifts have thrown some investors overboard, with shares dropping 7.9%. One of the shifts is restructuring that will see about 7% of Adobe’s (NASDAQ:ADBE) workforce laid off. Adobe (NASDAQ:ADBE) will also shift its Flash licensing model from up-front sales to a leasing system. While the change scared some investors, Brigantine Advisors analyst Barbara Coffey suggests Adobe (NASDAQ:ADBE) will be a stronger company in the long-run. Adobe also plans to infuse HTML5 into all its products, shaping up for an innovative future. In the meantime, revenue growth is expected to drop to 4-6% until 2013.
Here’s how these stocks are trading:
- Apple Inc. (NASDAQ:AAPL): The shares recently traded at $396.71, down $9.52, or 2.34%. Its market capitalization is $368.65 billion. They have traded in a 52-week range of $297.76 to $426.70. Volume today was 13,476,136 shares versus a 3-month average volume of 21,360,600 shares. The company’s trailing P/E is 14.33, while trailing earnings are $27.68 per share. About the company: Apple Inc. designs, manufactures, and markets personal computers and related personal computing and mobile communication devices along with a variety of related software, services, peripherals, and networking solutions. The Company sells its products worldwide through its online stores, its retail stores, its direct sales force, third-party wholesalers, and resellers. Get the most recent company news and stock data here >>
- Adobe Systems Inc. (NASDAQ:ADBE): The shares recently traded at $28.05, down $2.37, or 7.79%. Its market capitalization is $13.77 billion. They have traded in a 52-week range of $22.67 to $35.99. Volume today was 22,073,903 shares versus a 3-month average volume of 7,320,350 shares. The company’s trailing P/E is 15.36, while trailing earnings are $1.83 per share. About the company: Adobe Systems Incorporated develops, markets, and supports computer software products and technologies. The Company’s products allow users to express and use information across all print and electronic media. Adobe offers a line of application software products, type products, and content for creating, distributing, and managing information. Get the most recent company news and stock data here >>
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