The dog days of summer are continuing to be enlivened by some interesting financial results and announcements coming from some of our industry's leading companies. Kodak (NYSE EK) announced another quarterly loss, this one larger than Wall Street expected, and saw their stock drop below $20, which is a 25-year low! Ouch. Losses in the quarter were accentuated by higher materials costs in the traditional film side of the business. And another reason for the stock's decline was attributed to their reduced outlook for digital camera sales growth, due to their efforts to steer clear of sales increases at the expense of profitability in this rapidly saturating market.
On the other hand, Adobe Systems (NASDAQ ADBE) led the entire tech sector to gains in Wednesday's markets, as they affirmed guidance for a strong third quarter. The company crowed about upcoming releases of Acrobat and Creative Suite -- interesting that one of the news items on their announcement referred to Adobe as being known for "the ubiquitous Acrobat program for sharing digital documents". We can see why there is some nervousness over the impending XPS functionality in Microsoft Windows and Office!
By the way, with EK below $20 a share, the company's market cap is between $5 and $6 Billion. And with ADBE back about $32 (a big improvement over the $26 of a couple of weeks ago but well below its range in the low $40's earlier this year), their market cap is just under $20 Billion.
Looks like...bet on digital!