from bloomberg,
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Mon, 03 Jan 2000, 3:15pm EST
Oracle Rises on Optimism for Increased Post-Y2K Tech Spending
By Aimee Picchi
Oracle Rises on Optimism for Increased Post-Y2K Tech Spending
Redwood Shores, California, Jan. 3 (Bloomberg) -- Shares of
Oracle Corp., the No. 1 database software maker, rose as much as
12 percent on optimism that corporations will boost spending on
its software now that fears of the Year 2000 glitch have passed.
Oracle rose 4 13/16 to 116 7/8 in early trading after
touching 125 3/16. Banc of America analyst Robert Austrian raised
his rating on Oracle shares to ``buy' from ``market perform.'
Austrian wasn't immediately available for comment.
Oracle and other software makers could see revenue rise as
more corporations increase technology spending now that the year
has changed to 2000 without any major problems, analysts said.
Many companies had spent millions of dollars over the past few
years on fixing computers that could have malfunctioned if they
read the year 2000 as 1900.
``We made it through Y2K without hitches, so people are
thinking companies will spend on new things, and Oracle will be a
key beneficiary,' said Gary Abbott, an analyst at Punk, Ziegel &
Co. who rates Oracle shares ``buy.'
Redwood Shores, California-based Oracle could also benefit
from increased spending on business-to-business electronic
commerce, Abbott said. Oracle has said it expects sales to keep
rising in coming quarters. |
