Goldman: Spending Slowdown to Hit Software (ORCL, et al)

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.

NOW WATCH: Tech Insider videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.

Tagged In

sai-us