Oracle and Google brought cheers to Tech-Stocks

Pin It

Dec 21 2007
Linked In

Thursday was the trading day that saw investors / traders primarily concentrated on technology stocks. The Dow didn’t perform and only managed to up by 0.29% or 38.37 points – still it was well above the support and psychological 13,000 level. However Nasdaq was up by 1.53% or 39.85 points to 2,640.86 points. That was enough to bring cheers to technology stocks such as Apple Inc., Google Inc., Priceline.com Inc. and Oracle Corp., of course.

Basically, there were two news that contributed well into the otherwise another boring trading session. Firstly the strong profits by Oracle Corp. brought back optimism to investors, at least temporarily, after days of economic slowdown haunting. Oracle’s results indicate that some companies will still be able to show growth even as tight credit markets make it harder for some companies to raise capital – reported AP.
Technology StocksSecondly, it was none other than Google Inc. itself which add muscle to the technology stocks after the U.S. Federal Trade Commission on Thursday approved Google’s pending acquisition of DoubleClick (acquired back in Apr for $3.1 billion). However Google’s hurdle with European Commission (EC) still remains the biggest stumbling block. Approval from U.S. regulators doesn’t guarantee approval from European regulators and if the EC votes no, it would probably limit Google’s opportunity for revenue and profit growth although the giant search engine will not collapse, obviously.

With Google’s financial strength, it could either build its own display advertisement network or buy a similar DoubleClick company but of a smaller size to prevent opposition from the EC. On the other hand, Friday will be the expiration Friday for options traders. Hence expect the usual unusual high volatility for the day.

Pin It

FinanceTwitter SignOff
If you enjoyed this post, what shall you do next? Consider:

Like FinanceTwitter Tweet FinanceTwitter Subscribe Newsletter   Leave Comment Share With Others


Add your comment now.

Leave a Reply


(required)(will not be published)