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Techquity: Don't buy Oracle's reasoning for weak sales

Friday, June 21, 2013 - 02:16

Jun 21 - Reuters Breakingviews Columnist Rob Cyran on why he doesn't believe Oracle's explanation for its weak sales. Plus, how market selloff may impact tech.

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Oracle poor quarterly results show things are getting more difficult for the software giant. Sure earnings were as good as expected and accompanied doubled its dividend but overall license revenues are growing that's bad -- tech company. Once growth stalls companies have a nasty habit of becoming irrelevant. Or missed because sales -- -- offer licenses stagnated that needs fewer customers are locked into using oracle company blamed tough economy but I don't buy -- There host of smaller online firms that are gunning for its business. Companies like Salesforce.com. And workday offered cheaper and easier way for enterprises to manage their workers and customers. These -- a starting price wars. Salesforce.com. Hasn't been profitable for eight quarters in a row. -- -- oracle compete. Its shares down 8% you're thirty dollars. Now if you thought in the market itself and its impact on -- While the -- been fairly large and mark like the US emerging market taking on the chin as investors withdraw offered risky investments. These markets there were a lot of growth is coming -- for companies like apple. And on concerns about a credit crisis in China and the prospects for tech firms are daunting. If Chinese consumers pull back on its mark on towel purchases. Are from device makers to chip companies are gonna take a hit. Also this week bond prices have sunk which has led to a spike in interest rates US ten year note is near 2.5 percent. Little hasn't hit since August 2011. -- -- higher cost to borrow money that's something companies of all kinds including -- due to pay per share buybacks and higher dividends. So don't expect a potential boost your total return from these methods. Soaring -- -- time Republican movers. Soaring -- while at the Canadian patent license company renewed -- wireless products -- with Samsung shares up 6%. And sputtering and -- -- down another 16%. After dropping 40% on Thursday. Its merger with an affiliate of Goldman Sachs has called off after regulators said their probing allegations of misconduct edicts. I think it is Friday and every can follow us on quarter our -- technique. I'm rob Syrians and the threats.