Adobe, next victim of the market?
The market for tech stocks is really nervous, or the cockpit is really over. Today, in fact, it was enough for an analyst (Rebecca Runkle of Morgan Stanley Dean Witter) to lower its rating on Adobe from "Outperform" to "Neutral" to cause a 10% drop in the share prices of the company that produces PhotoShop. In parallel, also for the now creeping mistrust, the whole Nasdaq has started a race to the bottom that has hit many leading technology titles. In this case, in addition to the domino effect triggered by Adobe, there is also the belief that the next company to post profits below the forecasts will be Dell.For what concerns Adobe it should be noted that the lowering of the rating would be determined not by internal problems to the company but the weakness of the market and the consideration that the prices are overrated compared to the price / profits ratio. "The warnings of lower than expected profits coming from Apple, Kodak Gateway and Compaq – says the analyst of Morgan Stern – they tell us that the graphics sector in crisis and Adobe could be hit. " Runkle adds that the effects of the slowdown are not expected to be felt in the short term. "A slowdown by Adobe would be of particular concern to the IT sector. In fact, most of its business is aimed at the corporate or professional segment, an area that analysts say would have been spared, unlike that of the business, by the slump in sales. In any case, the title seems to reign supreme at the moment. uncertainty. Nobody seems to be able to tell when and if Adobe's business really slows down. The Palo Alto company, meanwhile, has not yet announced any changes to its expansion plans. 250 people are expected to be hired each quarter for the whole of 2001.