By William Trent, CFA of Stock Market Beat
Back in December we said:
We recently took profits on our Adobe (ADBE) position because we have noticed the stock tends to trade down following the release of a major new upgrade on the theory that there will be no more good news for a while. Of course, this is not the typical upgrade and things could be different this time. For one thing, the switch to Intel-based Mac support should be a significant demand driver for the company’s creative professional customer base. For another, it isn’t just a Photoshop upgrade, as some users are reporting.
The company’s guidance certainly buouyed investor enthusiasm after the latest conference call, and early indications suggest the enthusiasm may be warranted.
It would appear Adobe underestimated the excitement the launch of Photoshop CS3 would cause.Although the homepage works fine, try to access the online Store and it all goes horribly wrong.
As you’ll see in our screenshot, the IE title bar states “Scheduled maintenance” as the reason for the site being down. We can help thinking it odd that Adobe should schedule maintenance on its site on the same day it launches its biggest money-spinner.
The product, which so far is available only for download, has been widely anticipated (and when we tried the store opened fine.) The dangerous game investors play, however, is to try and figure out whether it was more widely anticipated than anticipated.
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