There's Still Trouble Ahead for The Tech Sector

September 19, 2008 at 3:12 pm PT

Yes, it sure is nice to see stock prices flashing green. But despite the market’s historic two-day move, there are still reasons to worry about what happens to technology shares over the next several quarters.

There are several negative factors at work here. Start with currency: One of the more eye-opening aspects of Oracle’s (ORCL) well-received earnings report last night was the company’s comment that revenues in its fiscal third quarter ending October will see a serious drag from currency factors. Oracle expects a 10 percentage point swing on a year-over-year basis: Currency boosted revenue by 7 points in the year-ago quarter, but will cut revenue growth by 3 percentage points this year, assuming exchange rates stay about where they are now.

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Tagged with: Barrons, currency, Eric Savitz, exchange rates, frontpage, Oracle, shares, Tech Trader Daily, technology

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