Adobe added 464,000 Creative Cloud subscribers in the second quarter, bringing its total subscriber base to about 2.3 million. The company expects to end fiscal 2014 (ending November) with 3.3 million Creative Cloud subscribers, up from its previous forecast of 3 million.
The increased Creative Cloud numbers helped drive up Autodesk stock as the company targets a similar market with its 3ds Max and Maya software. Autodesk is in the process of moving that software to the cloud like Adobe did with the Creative Suite.
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"We rate AUTODESK INC (ADSK) a HOLD. The primary factors that have impacted our rating are mixed ? some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its solid stock price performance, revenue growth and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and weak operating cash flow."