Oracle missed its third-quarter revenue projections yesterday and investor reaction was swift and dramatic: shares of the software maker dropped 8% in after-hours trading, reports the Wall Street Journal. This despite the fact that Oracle’s profits rose 30% to $1.34 billion, 26 cents per share, from $1.03 billion, 20 cents per share a year ago. Revenue rose 21% to $5.35 billion, short of analysts’ $5.42 billion expectations.
The world’s third-largest software maker for businesses is viewed as a bellwether for the tech industry and its disappointing sales fueled investor concerns that technology spending by corporations Is slowing, dragged down by tight credit markets. "There are some chinks in the armor," said a Goldman Sachs analyst. "Nothing is immune in this kind of climate."