Investors fled technology company catering to business and Government agency after quarterly report discouraging of Oracle Corp. refers to a sales slowdown that may otherwise be dragged into the industry next year.
Shares of Oracle and an assortment of other business software makers are dumped in Wednesday’s trading. Wall Street managed Oracle’s excited reaction performance of beatings during the three months ending in November.
The results, announced after the stock market closed Tuesday, falling under the projections of industry analysts and Oracle’s own management. Shortage that triggered fears that big spenders and software technology to another pull back as uncertainties raised by the European debt crisis threatening to topple the fragile global economy.
Oracle absorbed the burden of punishment. The stock had fallen by 12 percent, decrease them as almost a decade. Deterioration of jarring lopped about $ 18 billion of market value of Oracle’s and trimmed about $ 4 billion of the fate of its CEO, Larry Ellison, who has a 22 percent stake in the company. Oracle’s stock has plunged $ 3.51 to $ 25.67 during Wednesday’s late afternoon trading. It marked the biggest one-day drop in stock prices since March 2002 when Oracle’s stock fell 14.5%, according to data compiled by FactSet.
List of other business software makers caught in downdraft during late afternoon trade including: VMware Inc., shares fell $ 9.69, or 11 percent, to $ 75.63; Citrix Systems Inc., down $ 5. 66, or nearly 9 percent, to $ 57.72; SAP AG, down $ 3.92, or 7 percent, to $ 51.81; F5 Networks Inc., down $ 8.30, or more than 7 percent, to $ 101.09; Teradata Corp., down $ 3.01, or 6 percent, to $ 47.48; Cognizant Technology Solutions Corp., down $ 4.64, or 7 percent, to $ 62.99; Salesforce.com Inc., down $ 6.22, or 6 percent, to $ 98.10; and Red Hat Inc., down $ 2.01, or nearly 5 percent, to $ 39.94.