Software giant Oracle (Nasdaq:ORCL)
has always marched to the beat of its own drummer, and that willingness
to go its own way has always been a big driver of the company's
success. It doesn't come without a cost, though, as Oracle is also
surprisingly volatile on a quarter-to-quarter basis when compared to
other large tech companies like IBM (NYSE:IBM), Microsoft (Nasdaq:MSFT), and SAP (NYSE:SAP).
For
the company's fiscal third quarter, that volatility swung in a very
negative direction. While the shortfall may well have been due to a
combination of revenue pulled forward into the surprisingly strong
fiscal second quarter (as customers finished spending on 2012 budgets)
and weak sales execution, investors are likely to take it as a
referendum on the near-term health of the tech sector. More patient
investors, though, may want to use an opportunity like this to build a
position in a company that, while erratic, is also a strong performer
with an interesting valuation.
Continue reading here:
http://www.investopedia.com/stock-analysis/032113/oracles-negative-surprise-underlines-surprising-volatile-model-orcl-ibm-hpq-dell-msft.aspx
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