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Published on Sep 28, 2016
Investors
seeking to conquer the cloud should start by snapping up shares of
Adobe , Salesforce , Workday and Wix.com , said Samad Samana enterprise
analyst at Stephens. Last week Adobe, up 14% year-to-date, reported
adjusted earnings of 75 cents per share, above Wall Street's expected 72
cents per share. Revenue came in at $1.46 billion, beating analysts'
projected $1.45 billion. The company said the increase in revenue was
driven by strong performance in its digital media and cloud-based
content segments. For the same quarter last year, the San Jose, CA-based
software company reported earnings of 54 cents per share and $1.22
billion in revenue. Adobe said it now expects fiscal 2016 fourth-quarter
earnings to be in the range of 83 cents to 89 cents per share. Wall
Street is looking for 78 cents per share for the quarter. "Adobe is a
high quality, high growth story," said Samana. "They dominate content
creation and are at the forefront of digital disruption at the largest
enterprises." Samana is also bullish on Salesforce, which is down almost
10% year-to-date and is reportedly kicking Twitter's TWTR tires.
"Salesforce defines itself as a social enterprise and Twitter is one of
the last transformative social media acquisitions around, so it is
possible," said Samana. "But it would be poorly received by investors
because Salesforce is already is a leader in the cloud and Twitter is
not a 'must-own' entity." Workday, up 11% year-to-date, is another one
of Samana's top picks, saying the cloud-based HR specialist has the
chops to steal share from Oracle and SAP in the financials space. And he
is also a fan of Wix.com, up 92% year-to-date, saying the company, best
known for web creation, is gaining speed among small businesses seeking
to manage their business online.
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