Facebook Drops Flash

By Evan Niu, CFA – Aug 13, 2013 at 6:00PM

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Social networker Facebook becomes the latest major tech giant to shun Flash in favor of open standards. Should Adobe investors care, or should they focus on the transition to subscription models?

Another nail in Adobe (ADBE 0.89%) Flash's coffin! Social networker Facebook (META -0.52%) is dropping the platform for ads in its desktop News Feeds. Major tech giants have been moving away from the technology in favor of open standards like HTML5. Fortunately for Adobe, the company continues to transition its core creative products to a subscription model, and Flash is financially insignificant.

In the following video, Fool contributor Evan Niu, CFA, and Eric Bleeker, CFA, discuss how Flash is dying and why Adobe investors shouldn't worry too much.

Eric Bleeker, CFA, has no position in any stocks mentioned. Fool contributor Evan Niu, CFA, owns shares of Apple. The Motley Fool recommends Adobe Systems, Apple, Facebook, and Google. The Motley Fool owns shares of Apple, Facebook, Google, and Microsoft. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.