Adobe Systems (Nasdaq:ADBE) is about to release earnings. Ponder this Bear Case Scenario:
Adobe is moving services to the cloud on a subscription model. Always risky to carry out. Technical hurdles abound.
HTLM5 will challenge Flash even in non mobile applications. Remember what Steve Jobs said about Flash. Something about it being dead. Adobe needs to come up with something big to replace.
The growth of Adobe’s digital marketing plan will squeeze margins as new clients opt for in-expensive entry points. Can they be migrated upwards into champagne territory.
George Gutowski writes from a caveat emptor perspective.