Scalper1 News
Adobe Systems late Thursday slashed its 2014 revenue outlook by 21% and its expected earnings per share by 52%. And Friday morning Adobe stock soared to a record high. What gives? In the topsy-turvy world of Adobe (ADBE) lately, what looks like bad news is actually good news. The maker of graphic design and media creation software is transitioning its business to the Internet cloud/subscription model from buy-upfront software. The move holds the promise of higher lifetime revenue per customer, as users switch to paying a monthly subscription fee rather than buying software products outright and using them indefinitely. But Adobe’s top and bottom lines will take a short-term hit as customers stop paying upfront for the software. Investors are clearly focused on the longer term. Adobe stock was up nearly 11%, near 60, in morning trading on the stock market today . Adobe reported fiscal fourth-quarter results after the close Thursday. It earned 32 cents a share excluding items, down 48% from a year earlier, but matching Wall Street expectations. Sales fell 10% to $1.04 billion, above the… Scalper1 News
Scalper1 News