Even Oracle Isn't Immune to the Slowdown
A disappointing third quarter highlights the software giant's vulnerability to the ripple effects a sluggish economy is having on IT
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Tech investors looking for a stock haven amid roiling markets of late have turned to industry consolidator Oracle. Shares of the software company rose nearly 14% over a three-week span in March as investors bet on Oracle's formidable lead in database software and its aggressive acquisition strategy in business applications as an antidote to the economic malaise that's throttling IT budgets.
Some of those shareholders reconsidered their strategy on Mar. 26 after Oracle (ORCL) released fiscal third-quarter results that fell short of analysts' forecasts. Oracle reported sales of new business application software licenses, a barometer of future revenue, that were about $100 million less than Wall Street expected.