Oracle News Spells Trouble for 900 Funds
Stock plunges in after-hours trading, hitting large-growth funds hard.
The motto for investors in tech-heavy funds these days ought to be: Enjoy good news while it lasts, and that won't be long.
After the Nasdaq Composite index posted its first gain in what seemed like an eon, rising nearly 1.5%, Oracle (ORCL) spoiled the news on Wall Street by issuing an earnings warning after the close Thursday. Oracle CEO Larry Ellison said preliminary figures indicate that the company's operating earnings totaled just $0.10 per share for the fiscal quarter that ended February 28. Wall Street analysts had expected per-share operating profits of $0.12. Ellison cited (surprise!) the slowing economy, which had caused companies to defer information-technology spending, as the reason for the profit shortfall.
Scott Cooley does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.
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