Topic: Growth Stocks

Wall Street Stock Forecaster Hotline – Friday, November 11, 2011

Article Excerpt

ADOBE SYSTEMS INC., $28.43, Nasdaq symbol ADBE, fell 5% this week after the company announced a new restructuring plan. A big part of this plan is Adobe’s decision to quit making its Flash software for smartphones and other mobile devices (Flash lets web site developers make web pages more interactive by adding animation and video). That’s mainly because Apple Inc. (Nasdaq symbol AAPL) refused to include Flash in its hugely popular iPhone and iPad. Apple feels Flash is slow and uses too much battery power. Adobe will shift its focus to HTML5, a rival format that Apple supports. The company will continue to make Flash software for online gaming and video services. It also plans to develop new products that will help businesses improve their marketing. The restructuring will result in an 8% cut to the company’s workforce. Adobe expects to pay between $87 million and $94 million in severance and other related costs. To put that in context, it earned…