Goldman cut estimates on 15 software companies this morning–including Oracle (ORCL)–saying that the weak economy will cause corporations to postpone purchases:
“macro indicators suggest a softening in capital spending in 2008, particularly in the U.S….[W]ith software a typically back-end loaded sale, if there is any concern on budgets in the early part of 2008, we would expect CIOs to hold off their purchases until later in the year.”
So much for the theory that economic weakness will be “contained” to housing, retailing, and financial services companies. The new dream will no doubt be that whatever slowdown there is won’t include advertising. Barron’s Eric Savitz has more.