SAP’s (SAP) quarterly earnings and its plan to spend a load of money in an attempt to pick up smaller customers drove the stock down 7% on January 24. CIBC downgraded the European enterprise software company and its arch-rival Oracle (ORCL).
Some portion of the investors on Wall St. lost faith in Oracle earlier in the month increasing short interest in the company by over six million shares to 58.2 million.
Concerns that the two big enterprise software companies can deliver out-sized 2007 results have indeed spread to the stocks. Over the last five trading days, SAP’s shares are off almost 5% and Oracle’s are down about 1%. Both have underperformed the Nasdaq over that period.
After reasonable runs in Oracle and SAP shares from July to early January, a little doubt is sneaking in.
Douglas A. McIntyre can be reached at [email protected]. He does not own securities in companies that he writes about.
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