Techquity: Oracle's stumble, Google's browser plan
Thursday, March 21, 2013 - 04:10
Mar 21 - Oracle's profit hits a speed bump but the problems may not last, plus Google's chairman sheds light on the company's browser plans.
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Blamed the sales people. That's oracle of one of our best of the rest tech firms is doing what it's shockingly wide earnings and revenue in this. It's these softer licensing -- subscription revenues fell 2%. Even though oracle earlier predicted it would rise as much as 11% that's important. Because new softer sales are highly profitable and seen as a barometer of future revenue. Sales of new hardware also fell more than expected as company shifted to systems based on the cloud. And oracle warned that hardware revenues will continue to shrink significantly. The results surprised Wall Street the Pacific Crest Securities analyst Brendan Barnicle -- Oracle's explanation that was an execution issue. He's at other companies haven't suffered similar weakness and that demand overall strong so this is specific to oracle. He said a similar thing happened five quarters ago that oracle quickly rectified it. Barnicle is keeping his outperform rating but shaving his earnings estimates for the year. Credit Agricole cut its rating to under perform from outperform and lowered its price target by three dollars to 35 bucks. Investors punished the stock sending it down more than 8%. Hewlett-Packard is trying to give the shareholders something to smile about it raises quarterly dividend by 10%. Shareholders have expressed outrage at the board over its -- eleven billion dollar acquisition of British software for autonomy. However campaign to vote out several board members failed Wednesday shareholder meeting the computer and printer maker's stock is off 1% today. Google's rivals are stepping up their attacks on the company. Eleven online media companies including travel sites Expedia trip advisor have urged the European Union to get tougher with the search giant. They've written EU's competition commissioner urging the regulatory body to sanction it were allegedly abusing its market dominance. The EU is currently examining new proposals from Google to and the investigation. Which could result in a multibillion dollar fine. The UK's deals of Google's search dominance but it is also a dominant online video where has reached the milestone. The company says the number of unique monthly visitors going to YouTube has surpassed one billion. It joins FaceBook in the Billy club it reached one million active users in September. Google also making major push to become the browser of choice on desktops with chrome and mobile devices with android. Chairman Eric Schmidt was promoting the company India says don't expect them to merge those services anytime soon. If you're not using chrome is an advertisement for example that right now you should be using chrome. It's faster it's safer it's more secure than any -- the browser traces. In android which is primarily -- job like development environment it's all the different problem. There will be more commonality for sure but they're certainly gonna remain separate for very long time to solve different problems. Shares of Google roughly flat here 813. Dollars. And -- you may know lot about you now but just wait. The company's reportedly signed a contract to work with the SE RI AA. Federal computer week which covers technology in the federal government. Says Amazon will help intelligence agency build a private cloud infrastructure that helps to keep up with emerging technologies like big -- The ten year deals worth of this 600 million dollars. The CIA and Amazon would not comment. Shares of Amazon down 1% today. Soaring and -- time our look at movers soaring is home away Morgan Stanley upgrading a home -- website from equal weight to overweight. Shares are up 7%. And sputtering is Cisco Systems FBR capital cut its rating on the Dow component from market perform to under perform. It's these hardware market declining shares down more than 3%. And that's equity this Thursday remember it involves not literate RT RS equity. I'm Fred Katayama at this.
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