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Oracle stock slammed on weaker earnings

Oracle’s share price fell by more than nine years Wednesday, dragging the part of other software vendors, the day after reporting quarterly sales and earnings that missed analysts’ estimates,a sign that companies spend less on programs that help to manage operations.

Oracle is considered an indicator for the technology sector, as its fiscal year led to several previous reports of other companies and business heart of the sale of database software and commercial software with high-end hardware, it shows available to other companies to spend. On this front, the growth of Oracle low of 2 percent in new software licenses seemed to signal tough times in the industry.

In a telephone call with analysts on Tuesday, for example, Oracle executives took care not to make predictions about the economy. Safra Catz, president noted that sales have slowed at the end of the quarter ended November 30, with software solutions that require approval levels than usual, but did not say why. He added that Oracle now takes into account the change.

Even companies that are not in direct competition with Oracle, but is likely to provide services to companies paid for the same budget, immediately. Palo Alto, along with VMware virtualization business fell 9.9 percent, and the open-source company Red Hat fell 4.9 percent.

The share plunged 12 percent to close at $ 25.77 on Nasdaq after the reduction of up to 15 percent for the biggest drop since March 2002. Before Wednesday, Oracle fell 6.8 percent this year. The company also says it will buy up to $ 5 billion of shares.

Andrew Bartels, who follows the technology spending, Forrester Research, said the results of Oracle Oracle seems to have some problems and your exchange business, as he did for the economy in general. Also, he said, the economic news in late November that the indicators seemed worse now.