Adobe Systems, a cheap technology stock, may seem tempting but more drops expected
Article Abstract:
Adobe Systems Inc, a strong performing stock, may not be as good a buy as it appears to be, according to an investment adviser. Although revenue has consistently risen an at an annual rate of almost 50 percent since 1987 and analysts believe that sales will grow 20 percent in 1993, investment advisor Edward Petner believes that Adobe stock is about to plunge in value. The software company is suffering from the effects of a price war in the hardware industry and Microsoft Corp's dominance of the software industry is increasing. A major source of Adobe earnings have been generated from royalties paid for use of its PostScript page description language. Printer prices are dropping, resulting in a corresponding dip in royalties. Microsoft is marketing TrueType, a competing page description language. Adobe reported per-share earnings of 46 cents for its fiscal 3rd qtr ended Aug 31, 1992.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1992
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Tech firms losing growth-stock status; below-market P-Es said to be deserved
Article Abstract:
Wall Street is apparently concluding that high-tech shares should not be treated as growth stocks; they should trade at their often below-market multiples of earnings. Tech stocks were already in some trouble when they encountered unusual difficulties in Dec 1989. Problems were exacerbated by bad news from IBM, Compaq Computer Corp and Apple Computer Inc. Tech stocks were jolted again on Dec 13, when Shearson Lehman Hutton Inc pulled Microsoft Corp from its recommended list, placing the stock with those likely to match rather than outperform the market. In the 1970s, investors were willing to pay high prices for high-tech stocks, expecting sales growth and earnings increases. Now, investors seem to regard technology stocks as 'cyclical growth' stocks, realizing that the technology sector might no longer represent the fastest-growing segment of the economy.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1989
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Shares of Computer Associates decline on earnings news
Article Abstract:
Computer Associates International Inc stock fell $2.375 a share to $17 on the New York Stock Exchange. Trading had sharply risen on Aug 11, 1989, as investors reacted to the company's earnings prospects. But the stock was the second-biggest loser on the Big Board in percentages. Computer Associates helped to cause the sell-off by announcing on Aug 9 that there were uncertainties about results for the quarter ending Sept 30, 1989. The company's problems center on the pending acquisition of rival Cullinet Software Inc. Customers have delayed making purchases until the acquisition is completed.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1989
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