Adobe (ADBE) is one of my favorite tech stocks because they know when and what to buy.
In 2005, the company dug deep to buy Macromedia, an acquisition that propelled Adobe to pole position in creative publishing. Now they are betting big on online marketing with the announced acquisition of Omniture, the largest provider of web analytics.
This is a sensible acquisition. As Barron's points out, it incredibly complements Adobe's existing businesses, though myopic analysts and soundbite investors took the usual short-term view of the acquisition.
Another major reason the acquisition is an eight ball is because companies are shifting a big chunk of their marketing dollars online. Web (online) marketing is going to be big in the future, a reality obviously not lost on Adobe.
On the downside, the acquisitions brings Adobe in direct competition with Google Analytics. Google's YouTube and Chrome browser utilize Adobe's Flash technology, so will Adobe's move spoil the friendship? Maybe.
Anyway, it seems friendships in Silicon Valley are "till competition do us part", as the recent souring of the relationship between Google and Apple reveal.
May the best company win.
