Topic: Growth Stocks

Wall Street Stock Forecaster Hotline – Friday, October 8, 2010

Article Excerpt

ADOBE SYSTEMS INC., $26.99, Nasdaq symbol ADBE, jumped as high as $28.90 a share this week on reports that MICROSOFT CORP., $24.24, Nasdaq symbol MSFT, may launch a takeover offer for the company. A merger could help Microsoft compete in the fast-growing field of software for smartphones. Right now, Apple’s iPhone and phones powered by the free Android system, which is made by Internet-search provider Google Inc., dominate this market. Microsoft hopes to improve its market share with its upcoming Windows Phone 7 operating system. Adding Adobe’s Flash video software could give Windows Phone 7 an advantage over Apple and Android phones. As well, Adobe’s products could help Microsoft develop new software for touch-screen tablet computers. Adobe recently reported record-high quarterly revenue. However, slowing sales of its flagship Creative Suite 5 software package will hurt its future sales and earnings. Adobe is still a hold. Even without Adobe, Microsoft should continue to profit from strong demand for its Windows operating system software and…