News Alert from Reuters
Topic: Macromedia Inc
Headline: Apple (NASDAQ:AAPL) news lifts developers and suppliers
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NEW YORK, Aug 6 (Reuter) - Hopes that Apple Computer Corp
would succeed in its turnaround efforts sparked a rally in
companies whose fortunes are closely tied to the troubled
computer maker.
Shares in several software developers, particularly those
focusing on traditional Macintosh markets such as graphics and
multimedia, were up solidly in afternoon activity, including
Macromedia Inc (NASDAQ:MACR) and Adobe Systems Inc (NASDAQ:ADBE).
"The Mac has always been a platform for graphics
developers," said one trader. "That's why you're seeing action
today in companies like Adobe."
Shares in Adobe rose 1-3/8 to 40-5/8 and Macromedia jumped
1-1/16 to 9-9/16, while Symantec Corp (NASDAQ:SYMC), whose Norton
Utilities software consistently ranks among best sellers for
the Macintosh, gained 7/16 to 24-7/8.
Some hardware outfits also gained. Shares in Macintosh
modem maker Global Village Communication Inc (NASDAQ:GVIL) rose
27/32 to 2-7/8.
Among makers of disk drives, Quantum Corp (NASDAQ:QNTM)
potentially stands to benefit the most from an Apple
turnaround, said SoundView Financial analyst Mark Specker, as
Apple represents more than 10 percent of Quantum's revenues.
However, Specker, who is bullish on Quantum, hastened to
caution that potential Apple benefits for Quantum are far off.
"I haven't seen anything yet that suggests we have a unit
story yet," he said. "I hate to throw cold water on the story
but we have a long, long way to go before we have actual
execution."
Those concerns were echoed in the options market, where
traders said action suggested many investors doubted the
staying power of Apple's sharp rally today.
Shares in Quantum rose 1-11/16 to 35-13/16. Shares in Apple
jumped 6-11/16 to 26-7/16.
Copyright 1997, Reuters News Service |
