Oracle stock hit by 29% loss as profits disappoint
Article Abstract:
Oracle's shares sank 29% on Dec 9, 1997, following a 2nd qtr 1998 earnings report that fell far short of analysts' estimates. The software company lost $9.44 billion in market capitalization after a Nasdaq-record 172.5 million Oracle shares were traded. Quarterly earnings totaled $187 million, or 19 cents a share, compared to 23 cents a share projections from analysts surveyed by First Call. Oracle's 2nd qtr 1997 earnings amounted to $179 million, or 18 cents a share. Analysts reported concern that Oracle experienced a sales dropoff in the US, Canadian and Latin America, in addition to Asia. The change indicated a significant slowdown in Oracle's core database software and applications software business. Quarterly database sales grew by just 3% during the 2nd qtr 1998, compared to predictions of 18% to 20%, according to Goldman, Sachs. Application software sales fell from 96% in the 1st qtr 1998 to 7%, according to Goldman, Sachs.
Publication Name: The New York Times
Subject: Business, general
ISSN: 0362-4331
Year: 1997
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What's a blue chip worth? The case for IBM stock
Article Abstract:
IBM stock is a great value despite its volatility. IBM's market valuation is only 9.04 times its projected earnings for 1996. This figure contrasts sharply with companies such as EDS, which trades at 26 times its earnings. IBM revenue for 1995 stood at $72 billion, compared to $6 billion for Microsoft. Microsoft has a market capitalization of $67.1 billion, however, while IBM stands at only $59.4 billion. IBM stock is such a good deal that IBM is investing in itself, a process that further increases stock value. A board approval for a $2.5 billion buyback brings to $10 billion the amount reinvested in 1996. On Apr 17, 1996, investor warnings from IBM regarding currency shifts and profit margins prompted a single-day plunge of $5.5 billion. IBM shares have vacillated between $83 and $128 between Jan and May of 1996.
Publication Name: The New York Times
Subject: Business, general
ISSN: 0362-4331
Year: 1996
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Basking in technology's glow
Article Abstract:
Expert Software Inc plans to launch an initial public offering in early Apr 1995. The company specializes in inexpensive software for the consumer market, including software for writing resumes and planning vacations. Industry analysts report that the home computer market will generate $5 million in sales in 1995 and is expected to grow 20% per year in the near future. Expert Software's experience in the home user market is causing some Wall Street analysts to predict that the company's stock will go public at a price between $9 and $11 per share. This is roughly 20 times the company's 1995 estimated earnings of 51 cents a share. The stock of Expert Software's chief rival, Softkey International, is trading at $25.50 per share, which is roughly 20 times its 1995 annual earnings.
Publication Name: The New York Times
Subject: Business, general
ISSN: 0362-4331
Year: 1995
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