In Oracle Corp's dismal quarterly results sent shock waves across the technology sector as investors feared they may have overestimated the resilience of corporate tech spending in a deteriorating global economy, says a report by Reuters.
In what is believed to be the first earnings miss in 10 years from Oracle, the company's fiscal second quarter (ended November 30) results caused its shares to fall over 11 percent on Wednesday, wiping out $20 billion in market value.
According to the Reuters report, the shortfall from the No. 3 software maker also hit shares of many other technology companies, with VMware Inc, NetSuite Inc, and SAP among those suffering the biggest losses.
"Is this a preliminary example of what we could expect in January from Microsoft and other players? It raises an eyebrow that things may not be as hunky dory as we've been led to believe in terms of IT spending," Reuters quotes Daniel Morgan of Atlanta-based Synovus Securities as saying.
Other big tech firms, including Hewlett-Packard, Intel Texas Instruments recently reported bad quarterly results.
It's not just Silicon Valley firms that are down; Emerson Electric Co also reported a drop in orders for equipment used in big data centers.
On the contrary, India is seeing a heightened interest in big tech projects such as large data centers and 3G rollouts.
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