Technology stocks were in focus yesterday as Oracle stocks dropped more than 14% after the company disappointed with its revenue growth forecast. Stocks of Apple Inc. also saw a slide of more than 2% after the release of the iPhone 15.
Oracle’s revenue guidance leans on reduction in cloud spending
The week started high on Monday as the Nasdaq index, which was bolstered by the strong results of the major technology companies, helped the session finish on an upswing.
Things changed on Tuesday as Oracle (ORCL) provided poor revenue guidance for the current quarter after Monday's closure, as businesses cut back on cloud investment due to the weakening economy.
The computer software company forecast second-quarter revenue growth between 5%-7%, lower than the average analyst's estimate of 8.2%, causing a more than 14% decline in share price.
Apple Inc. revealed its Series 9 watch and iPhone 15
Apple’s (AAPL) eagerly awaited presentation, in which the company introduced its Series 9 watch with novel and appealing features in addition to the iPhone 15 with new upgrades like the USB-C standard and its enhanced satellite connection, failed to pique the public's curiosity.
The lack of investor excitement and the fact that the price of the new model was $100 more expensive than the previous one also contributed to Apple shares falling more than 2%.
The evolution of Apple stocks may depend on economic figures
In the past when Apple unveiled a new iPhone, the stock typically—though not always—showed significant gains the month after the reveal.
How the stock may react after the reveal of the latest iPhone in the near future will mostly depend on the market's performance as a whole, which will be closely related to the development of economic data and market interest rates.
Investors await the release of the US CPI today
Today the US Consumer Price Index (CPI) for August will be released. The predictions are not altogether optimistic; both the headline and underlying CPI are predicted to rise by several tenths.
The stock markets, especially those for technological stocks, will perform better the lower the figure released today.
Oracle monthly chart September 13, 2023. Source: CAPEX.com WebTrader.
Key Takeaways
- Oracle’s revenue outlook disappointed investors.
- The computer software company said this outlook is due to a reduction in cloud spending.
- Oracle’s shares fell more than 14% on the news.
- Apple Inc. Series 9 watch and iPhone 15 did not stir much interest.
- The price of the iPhone 15 is the same as the previous model - an increase was expected.
- Stocks of Apple Inc. fell more than 2%.
- The performance of Apple Inc. stocks may depend on economic figures.
- The release of the US CPI today may affect the stock market.
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Sources: Bloomberg, Reuters
