NEW YORK (CNNMoney)–A dismal quarter of software giant Oracle dragged down technology stocks on Wednesday, but tech analyst said the sell-off was overdone.
Oracle’s key sales metrics, income from new software licenses, up a slight 3% last quarter, compared with 11% of the Wall Street analysts had expected. Last year, sales increased 21% new license in the same quarter.
Oracle’s shares ( Fortune 500) sank 14 percent Wednesday on the news, dragging down the broader technology market with it. The Nasdaq composite index, which is the technology-heavy, falling 2 percent midday.
But Oracle said the licensing issues are not the problem request. It was with the slowing pace of additional sales manager approval companies now have to go through to complete the transaction, which tend to occur in times of economic hardship.
Red Hat ( RHT), the designer of the popular version of Linux operating systems for servers, also said customer demand Outlook weak driver not sent it Tuesday evening. Red Hat cited currency conversion as a challenge. Red Hat stock fell 6 percent on Wednesday.
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