Adobe in the Spotlight
Given its off-calendar fiscal year, Adobe tends to be among the first tech companies to report each quarter. Adobe is one of our favorite long-term holdings. Its Acrobat, Photoshop and Illustrator are industry leading applications, InDesign is quickly becoming the standard, and Dreamweaver and Flash from the Macromedia acquisition round out a great product portfolio. Add zero debt and strong cash flow to the mix, plus a dash of being in the right place at the right time as the vast consumer photo market goes digital and you have a recipe for long-term outperformance.
Near-term, however, expect the smart money on Wall Street to fret over how they are late in the product cycle, with no major upgrades yet announced. If this causes a drop in the stock price, it is worth taking the time to figure out if you want to hold a position.
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