Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
So what: Rumor has it Microsoft is trying to team up with Adobe to take down Apple's
Now what: An Adobe buyout makes a lot of sense for Microsoft, which has been losing share to Apple in the PC market. Adobe's flagship Creative Suite is used primarily on Macs in the design business, and Microsoft may be able to steal some of this share. It would also give Microsoft software for use on upcoming Windows Phone 7-based mobile phones. This is great news for Adobe shareholders, and I think the stock moves higher as more rumors spread and a possible bidding war starts, a la 3Par.
Fool contributor Travis Hoium does not have a position in any company mentioned here. Microsoft is a Motley Fool Inside Value pick. Apple and Adobe Systems are Motley Fool Stock Advisor recommendations. Motley Fool Options has recommended a diagonal call position on Microsoft. The Fool owns shares of Apple, and Microsoft. Try any of our Foolish newsletter services free for 30 days.
True to its name, The Motley Fool is made up of a motley assortment of writers and analysts, each with a unique perspective; sometimes we agree, sometimes we disagree, but we all believe in the power of learning from each other through our Foolish community. The Motley Fool has a disclosure policy.