Adobe Goes All-In on Subscription Pricing Model.

Started May 6, 2013 | Discussions thread
Ray Ritchie
Veteran MemberPosts: 3,794
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Re: Apparently The Stock Market has been reading this thread !!!!
In reply to Antioch, May 8, 2013

Antioch wrote:

Adobe made this announcement about this Cloud Model yesterday.

The day before the announcement, Adobe Stock price closed at $ 47.01. Yesterday it closed at $ 46.49 and today it closed at $ 45.60. So basically it has lost $ 1.41 per share since the announcement of the Cloud, a decline of 3 %. All of this while the entire stock market and major stock has all gone up at least 3 to 4 % the last 2 days, the stock market is making all time highs, except for Adobe.

Way to go Adobe !!

I think you're over-reading the market reaction. Adobe's stock has risen 41% since it announced the Creative Cloud last year, so a 3% decline is just a small adjustment compared to that. Analysts are forecasting Adobe's profits will be substantially down this year, but will start rising again next year.

I don't particularly like what Adobe's doing. I use the full CS suite, but am mostly a PS user, and don't think I can justify $600 or more every year to get access to all of the CC suite, especially given that I would have no fallback if I dropped my subscription. I'm toying, though, with the idea of trying out CC under the first-year discounts they're offering to current CS users, and then falling back on my current version of CS6 if I'm not persuaded I'm getting enough value from CC. But so far, the market reaction doesn't seem to reflect the hugely negative opinion we're seeing here. My reading is that the market feels corporate clients are much more significant for Adobe's future than most of us are.

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