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Adobe Driving Third Wave Of Enterprise Software Disruption

Digital media software giant Adobe Systems ( ADBE ) is well-positioned to drive the third wave of disruption in enterprise software, Rosenblatt Securities analyst Kirk Adams said in a report Monday. The first software wave was enterprise resource planning (ERP), which transformed back-office operations. Then came customer relationship management (CRM), which changed front-office operations. Adobe is calling the third wave “experience business,” which aims to reinvent how companies create, deliver and market products and services. “Adobe believes that this third wave could be bigger than both ERP and CRM,” Adams said. He reiterated his buy rating on Adobe stock and price target of 112. Adobe was down a fraction to above 92 in midday trading on the stock market today . Its stock hit an all-time high of 98 on March 18, a day after it reported better-than-expected first-quarter earnings and raised its guidance. Adobe outlined how it is pursuing experience business last week at its Adobe Summit 2016 conference in Las Vegas. This year’s conference drew 10,000 attendees, up from about 7,000 at last year’s show. “Adobe is focused on helping enterprises deliver consistent, high-quality experiences for their customers,” Adams said. “There are many point products and solutions from other companies, but only Adobe provides end-to-end solutions from content creation to marketing execution to measurement.” Adobe is the leader in digital content creation with its Creative Cloud offerings. Now it is moving aggressively into the marketing world with its Marketing Cloud, Adams said. Marketing Cloud includes tools for tracking the popularity of online content and the effectiveness of advertising and marketing campaigns. At its Summit conference, Adobe announced an audience measurement partnership with ComScore ( SCOR ) as well as new services and enhancements to its cloud platforms. “The Summit reinforced our view that Adobe continues to distance itself from competing digital marketing platforms,” Baird analyst Steven Ashley said in a report Wednesday. He rates Adobe stock as outperform with a price target of 105. Image provided by Shutterstock .

Summit 2016: Can High-Rated Adobe Systems Profit From Platforms?

High-rated Adobe Systems ( ADBE ) stock edged up Thursday but closed down slightly for the week of its Adobe Summit 2016 digital marketing conference. That’s a week after shares advanced almost 9% on the strength of Adobe’s first-quarter earnings report and outlook. The Adobe Summit in Las Vegas drew more than 10,000 people — the company’s largest live event to date. The theme centered around how brands are increasingly interacting with consumers in a wave of “digital experiences” online that leverage social networking. Actor George Clooney spoke at the Adobe Summit on Wednesday, but most presenters were from the tech and business worlds. Executives from major brands were among the featured speakers, from McDonald’s ( MCD ) and Mattel ( MAT ) to General Motors ( GM ) and General Electric ( GE ) to Comcast ( CMCSA ) and Charles Schwab ( SCHW ). That's right. It's George at #AdobeSummit talking experience and creativity. Watch live now: https://t.co/NTBQXucWEM pic.twitter.com/Q0HoYKOw3f — Adobe (@Adobe) March 23, 2016 “Adobe’s momentum in digital marketing was demonstrated in record attendance, including by CEOs, at its marketing summit,” Pacific Crest analyst Brendan Barnicle wrote in a research note as the conference kicked off Tuesday. “New products and partnerships increase its strategic value both to customers and the industry, and should drive continued growth and market-share gains.” Adobe Summit Sees World Gone Digital, From ‘Deadpool’ To Sea Of Data https://t.co/wT0S73h5it pic.twitter.com/Qz56otNOGn — Investors.com (@IBDinvestors) March 22, 2016 Adobe makes the Creative Cloud suite of content tools, such as Photoshop and Premiere Pro video editing software, along with the Adobe Marketing Cloud array of tools to track online content popularity and inform advertising decisions. This week, the company announced an audience measurement partnership with comScore ( SCOR ), among initiatives aimed at improving measurement of online video viewing and other forms of content consumption across platforms. Adobe Systems Analyst Briefing FBR & Co. analyst Samad Samana wrote Wednesday about an analyst briefing held in conjunction with the conference that “focused  almost  entirely  on  Adobe’s  technology  and  the  platform  pivot.” In recent years, Adobe has moved headlong to host its products in the Internet cloud, using the software-as-a-service (SaaS) model, with platforms that handle content’s entire life cycle from creation through tracking consumer interaction with it. Adobe CEO Shantanu Narayen summed up a broad Adobe goal: being able to “make, monetize and measure” the digital experiences that people have. “Management highlighted that it is investing around the ‘experience business’ wave of disruption and innovating at the platform level, both of which will be important in driving long-term growth for the digital marketing business,” Samana wrote. “While it is in the early stages, we see the platform play as strategically smart, as it should enhance the value proposition for Adobe’s entire product suite, making it stickier with customers.” Adobe, which is on the IBD Big Cap 20 stock list, closed up 0.4% Thursday at 92.52, down 1% for the week. The stock market is closed on Good Friday, March 25. Adobe gets a high IBD Composite Rating of 96 out of a possible 99. Adobe stock is a few percentage points under a potential buy point, trading above both its 50-day and 200-day moving averages. RELATED: Adobe Summit Sees World Gone Digital, From ‘Deadpool’ To Sea Of Data Image provided by Shutterstock .

Adobe Summit Sees World Gone Digital, From ‘Deadpool’ To Sea Of Data

Hit anti-superhero flick “Deadpool” got made with what’s been called an all-Adobe workflow . No wonder  Adobe Systems ( ADBE ) CEO Shantanu Narayen sounds a fan. In a keynote address kicking off the Adobe Summit 2016 digital marketing conference Tuesday, he used the cheeky comic book movie to illustrate how the content world’s gone digital. Adobe, of course, makes the Creative Cloud digital tools, such as Photoshop and Premiere Pro video editing software, and the Adobe Marketing Cloud tools used to track online content popularity and to power advertising decisions. The company gets a near-top IBD Composite Rating of 97, and the stock hit a new high in high volume Friday, after Adobe beat analyst views in its first-quarter earnings report and lifted its annual sales and earnings guidance. After February’s market dip, Adobe stock is back where it was in early January. How ‘Deadpool’ Went Digital “Last year one of the biggest media companies in the world decided to make an unknown superhero as big as Captain America without the usual big media and TV spots,” Narayen said in a livecast keynote  from the event in Las Vegas that he said drew more than 10,000 attendees. “Deadpool, a brash antihero most people had never heard of, wove his way into their lives through using one of the most innovative digital and social media campaigns ever.” “Deadpool,” by film folks at Twenty-First Century Fox ( FOX ), “shattered all box office records and is on the way to becoming the highest-grossing R-rated movie in film history,” Narayen said. He went on to talk about how MasterCard ( MA ), too, had moved to “pivot” a bit from traditional ad strategy toward online and social forms, exemplified by its #Priceless Surprises campaign that included things like winning a trip to the Grammy Awards. “Businesses must re-imagine how they interact with customers in a digital-first and digital-enabled world,” Narayen said, adding that “getting content to the right person at the right place at the right time takes data” — that is, the ability to analyze and target. Adobe Summit 2016 Debuts Adobe made several announcements in conjunction with its annual Summit show, including these three Adobe Marketing Cloud enhancements , among others: Adobe Certified Metrics , which standardizes some digital page and video viewership data that’s tracked in the Marketing Cloud. That will allow measurement partners, such as ComScore ( SCOR ) and Nielsen ( NLSN ), to “provide a complete view of total digital audience engagement across TV and digital,” which could boost ad-revenue opportunities. A new developer portal , Adobe.io. A TV recommendation engine called Adobe Primetime Recommendations, based on how the majority of U.S. households watch streaming TV and movies. It could be used by media companies and other kinds of firms to power what Adobe calls ” the next generation of TV recommendations.” TV Ratings For Digital Ad-Buying After viewing migrating away from the television itself toward online viewing via devices such as mobile phone screens and tablets, some online video viewing is now “going back to the living room,” Jeremy Helfand, Adobe’s vice president of video solutions, told IBD. “Over 20% of ‘TV Everywhere’ viewing is happening on connected devices — Apple ( AAPL ) TV, Roku or ( Sony ( SNE )) PlayStation or ( Microsoft ( MSFT )) Xbox, which is quite remarkable.” Historically, he says, “there was one currency — it was Nielsen — that’s what was used in order to purchase advertising,” Helfand said, “largely through upfronts and some residuals — that’s how advertising was bought and sold.” But tracking how many people are watching what these days, across a bunch of devices and websites, hasn’t been easy and that has hampered online video monetization efforts. Adobe Certified Metrics, which involves a developing partnership with ComScore following last year’s link-up with Nielsen, is one way that Adobe aims to make audience measurement easier and more standardized. “You’ve seen ComScore merge with Rentrak trying to bring digital and linear together just as Nielsen is,” Helfand said. “And you’re also seeing some media companies build their own definitions of who their audiences are, and go out to (ad) buyers and say ‘here’s my audience’.” The partnerships and platform development further Narayen’s goal of Adobe products and services being able to “make, monetize and measure” the digital experiences that people have in today’s world of content. The hope is that in turn will make Adobe software more crucial across a breadth of industries. In its Q1 report last week, digital marketing segment revenue at Adobe reached $406.2 million, which Pacific Crest Securities analyst Brendan Barnicle said, in a research note, was “better than the expectation of $402.7 million.” He added that the Summit event this week was “likely  to  provide  additional  positive  announcements  on  the marketing business.” Adobe added 798,000 new subscribers for its Creative Cloud businesses last quarter, and Barnicle noted that 30% of them were new to Adobe. He sees more CEOs driving adoption of Adobe products. “Like Salesforce.com ( CRM ) and Workday ( WDAY ), Adobe is seeing more CEOs make purchasing decisions,” he wrote. “In the 2016 Pacific Crest CFO Survey, both CIOs and CMOs saw a decline in the portion of the IT budget that they control. We believe that CEOs are making more IT decisions than ever before. They are looking to move their businesses to digital and to the cloud, and Adobe is one of several beneficiaries.” The Adobe Summit runs through Thursday, with actor George Clooney among speakers listed for the event — albeit most come more from the tech side than from Tinseltown. San Jose, Calif.-based Adobe has offices around the globe, including in Diegem, Belgium. It’s just outside Brussels, where terrorist attacks hit the airport and a subway station early Tuesday. Narayen started his talk with condolences, and despite its Summit event @Adobe said it was keeping its Twitter account silent for the day, in light of the Brussels situation.