Software stocks slumpAugust 24, 2012: 11:50 AM ET
Autodesk (ADSK) and Salesforce.com (CRM) both reported results after the closing bell Thursday that were viewed as disappointments. But Salesforce quickly recovered Friday morning while Autodesk continued to tumble. Shares fell more than 15%
The Autodesk news seemed to be hurting another graphics software firm as well. Adobe (ADBE), the maker of Acrobat, Photshop and Flash, was down nearly 4%. That made it the second-worst performer in the S&P 500 Friday, trailing only Autodesk.
Several traders on StockTwits were quick to defend Salesforce and equally quick to predict more pain for Autodesk.
Salesforce does still seem to have a brighter future. Analysts are predicting annual earnings increases of more than 27% a year on average for the next few years for Salesforce, compared to 16% growth for Autodesk and just 10% for Adobe. Some traders noted that new products from Autodesk and Adobe may not be living up to expectations.
But there are still some concerns about Salesforce as well, particularly its valuation and tough competition.
Now it's time for my Reader Comment of The Week! I like to joke about some of my colleagues in the financial media get all worked up when the markets make the tiniest of moves ... in a low-volume August ... when there is no news. This constant need to find a reason for every miniscule blip in the Dow is silly. So that's why @MarketPlunger gets this week's honors.
@LaMonicaBuzz I'm pretty sure Peter Thiel is behind this.—
Le MarketPlunger (@MarketPlunger) August 21, 2012
Anyway, I'm out all next week. And Best of StockTwits will also be taking a late summer hiatus. This feature will return (along with me) on Tuesday September 4. Enjoy the rest of August and Labor Day everybody. Now it's time for me to stop obsessing about stocks and FINALLY start doing some research for my upcoming fantasy football draft!