Adobe Embraces HTML5 with Edge, Heading to $35

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ADBE: Adobe logo
ADBE
Adobe

Adobe (NASDAQ:ADBE) announced the launch of its new tool called Adobe Edge earlier this week. Adobe Edge will allow creative professionals to design animated web content using HTML5, CSS and Javascript. Adobe’s Flash has traditionally been the most popular technology for creating interactive, animated content and competes mainly with Microsoft‘s (NASDAQ:MSFT) Silverlight and open web standards like HTML5. The company makes a majority of its revenues by selling products from the Adobe Creative Suite, which is comprised of Photoshop, Flash Professional, Illustrator, Dreamweaver and InDesign etc.

Photoshop and Other Creative software accounts for almost 52% of our $35 price estimate for Adobe. Our price estimate is around 25% ahead of the market.

Adobe to Capitalize on The Rise of HTML 5

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While Flash has been the dominant technology used to create interactive, animated content, its market share has been decreasing as HTML5 gains ground. Apple refused to support Flash on the iPhone and the iPad citing performance issues, which led many developers to move to adopt HTML5.

With PC sales dropping and tablet sales showing tremendous growth eventually many developers will move on to HTML5 to create content as it is compatible with most platforms and doesn’t need any special plugins.

With Adobe Edge, Adobe plans to capitalize on this shift to HTML 5. With Edge, Adobe can recapture some of its lost market share and improve sales of its Creative Suite software bundle, which currently has more than a 40% share of the global market.

Check out our complete coverage of Adobe.